Fiscal Policy in the News

Q&A: Everything You Should Know About Government Shutdowns

Congress faces a number of looming fiscal crises this fall, and the first obstacle is just around the corner -- if lawmakers fail to pass legislation to fund federal programs before September 30, the government will shut down.  Today, CRFB released a new Q&A for understanding government shutdowns and related issues, including continuing resolutions and the federal appropriations process.  This new resource also provides a historical and legislative background to the upcoming fiscal

The Washington Post on Why We Must Address Long-Term Debt

Yesterday, the Washington Post Editorial Board published an editorial urging lawmakers to use the looming shutdown as an impetus to come up with a serious response to the long-term debt picture rather than another short-term stopgap.  As we have written many

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  • Event Recap: National Journal Fiscal Fallout Summit

    Yesterday, National Journal hosted "Fiscal Fallout: What is 'Responsible' in Today's Fiscal Reality," a policy summit convening experts to discuss soultions for the long-term debt problem.

    Wessel: Prudent Politicians Would Focus on the Long Term, Today

    In his column in today's Wall Street Journal and an accompanying audio clip, David Wessel takes on the question before Washington: Is the budget deficit falling, or does it pose a serious threat to the nation's prosperity? His answer: Yes to both. On one hand, the budget deficit is shrinking, due in large part to the recovering economy but also due to some of the savings lawmakers have enacted over the past year.

    Fix the Debt Hosts National Fly-In

    This week Fix the Debt supporters from around the country visited Washington, DC to ask their representatives to work together and address the national debt. Members of Congress got the message that their constituents want them to act responsibly to achieve a comprehensive, bipartisan solution.

    The Student Loan Saga Ends?

    After weeks of deliberation and two and a half weeks after a key deadline passed, we finally have a deal on student loans. A bipartisan group of Senators and the White House hashed out a deal to reform student loan interest rates, well after the 3.4 percent rate on subsidized Stafford loans had reverted to 6.8 percent on July 1.

    Rivlin Warns More Work is Needed on Debt and Deficits

    Former CBO director and CRFB board member Alice Rivlin was interviewed by the Fiscal Times Sunday on the state of our budget and economy. Rivlin emphasized that while short-term improvements have been made in terms of the current fiscal outlook and economic recovery, there are still numerous long-term problems that remain.

    American Public Supports Fiscally Responsible Corporate Tax Reform

    Among developed countries the US is unique in taxes in a number of different ways. One claim to fame is the fact that the U.S. now has the highest marginal corporate tax rate. The current marginal rate in the U.S. remains at 35 percent while the average marginal rate of the OECD countries, excluding the U.S., is a full 12 percentage points lower at 23 percent. At the same time, the revenue collected by the corporate tax is low by international standards due to the number of corporate tax provisions which make the effective rate not nearly as high.

    The Debt Won't Magically Solve Itself

    Over the past few weeks, we've seen a common argument in favor of turning away from solving our long-term debt problem due to short-term improvements in the last CBO Economic and Budget Outlook.

    Washington Post Makes the Case for Fiscal Space

    When the financial crisis began at the end of 2007, it soon became clear that the government would need to run higher deficits in response. Tax revenue fell, spending on "automatic stabilizers" rose, and policymakers enacted new spending to stimulate the economy. At that time, the debt level was lower and in line with historical averages, giving lawmakers the room to borrow what they needed to adequately respond.

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