New CBO Numbers Show Remarkably Simple Path to Balanced Budget

Cato Blog ^ | 2/6/14 | Daniel J. Mitchell

[goodnesswins]

The two biggest takeaways are that a spending freeze (similar to what we got in 2012 and 2013) would almost balance the (Federal) budget in 2016 and would definitely produce a budget surplus in 2017. I also highlight what would happen if politicians merely limited spending so it grew at the rate of inflation, about 2.3 percent per year. Under that scenario, the budget would be balanced in 2019 (actually a $20 billion surplus, but that’s an asterisk by Washington standards).

[goodnesswins]

But, that would require Congress do their job....

[glorgau]

how much more debt would be rung up by 2019?

[Amendment10]

I admire the CBO. However, regarding the federal budget, the CBO really needs to tell Congress to comply with Justice John Marshall's official clarification of Congress's limited power to lay taxes. Justice Marshall had noted that Congress cannot lay taxes in the name of state power issues, essentially any issue which Congress cannot justify under its constitutional Article I, Section 8-limited powers.

“Congress is not empowered to tax for those purposes which are within the exclusive province of the States.” —Justice John Marshall, Gibbons v. Ogden, 1824.

[mulligan]

With Congress nothing is simple except more spending. No way this would float with our corrupt and incompetent group of politicians.

[Hardastarboard]

Therein is the rub. Just because the budget will be balanced doesn’t mean the debt will be reduced by a dime. We’re still in serious trouble.

[Nuc 1.1]

There will be no budget correction until the dims are sent to h@ll. if the dims win in 2014 or just hold their own our nation is finished. At least as we know it today. This election needs a discerning population to elect responsible people to the congress. Hmmm what is the chance of that one wonders?

[DCmarcher-976453]

I think this assumes all the obamacare taxes,all 19 or 20 are being paid but 30 million Americans still have no health ins.

[TBP]

Cut spending!

[Axenolith]

There must be some unicorns-crapping-skittles economic assumptions in that...

[logi_cal869]

Cut spending!

Apply those 2 words to a 2000-page legalese document titled, "American Reinvestment & Recovery Act II" and nobody will read it, everybody will vote for & pass it and we might actually be debt-free in 20 years or so without the current forecast consequences.

(I wish I were being sarcastic)