Statement from Michael A. Peterson on CBO’s August Update
“Today’s CBO report is yet another warning to our elected leaders that they must take action to address the nation’s fiscal challenges, including the upcoming fiscal cliff. What we desperately need is a bipartisan solution to the nation’s long-term fiscal problems that can be agreed upon now, and implemented gradually over time. A sustainable long-term fiscal plan for America would boost confidence in the economy in the short-term — aiding the recovery and providing businesses with the certainty they need to plan for the future and invest — and also put the nation on a better economic path for the long term.”
Further Reading
Should We Eliminate the Social Security Tax Cap?
There have been a number of proposals to increase, eliminate, or otherwise adjust the payroll tax cap as a way to shore up Social Security’s finances.
The Fed Reduced the Short-Term Rate Again, but Interest Costs Remain High
High interest rates on U.S. Treasury securities increase the federal government’s borrowing costs.
No Taxes on Tips Will Drive Deficits Higher
Here’s how this new, temporary deduction will affect federal revenues, budget deficits, and tax equity.