Jan 2, 2013
First – it is no longer the “Bush (temporary) tax cut” – it is now the “Obama (permanent) tax cut“, with a loophole for the 1%ers (whose big picture “impact” we showed previously)
Second – according to the just released scoring by the CBO, the total impact on the US budget deficit of said permanent tax cuts, will be a $4 trillion increase in the deficit over the next decade. In reality, due to the CBO’s perpetual optimistic bias, this number will likely be orders of magnitude lower than what it actually ends up being.
Maybe the US can just increase the taxes on the uber wealthy some more, and pray that unlikeObelix, they have never heard of Belgium.
In other news, perhaps it is time for the CBO to come up with an Extended Extended Alternative Alternative Fiscal Scenario. Because the baseline Extended Alternative, as demonstrated previously and as shown below, may now be just a smidgeon optimistic.