April 17, 2014
CBO’s Estimate of the President’s Budget: The Five Most Important Facts
1.) $1.6 Trillion – The CBO estimates the deficit will be $1.6 trillion more under the President’s Budget than the administration claims.
2.) 74.3 Percent – CBO estimates that the debt under the President’s Budget grows from 72.1 percent in 2103 to 74.3 percent as a share of the economy and remains on an upward trajectory. This is far bleaker than the rosy picture painted by OMB.
3.) Over $1.1 trillion in Gimmicks and Fiction – Even compared to CBO’s baseline the President’s Budget relies on at least $1.1 trillion in gross savings that fail a reality check: $659 billion phony war savings, $446 billion on a stalled immigration reform, and $67 billion from “Buffet Rule” tax gimmick.
4.) $1.4 Trillion More Taxes and $446 Billion More Spending – Compared to CBO’s baseline, the President’s Budget is pure tax and spend, raising $1.4 trillion in new taxes, while proposing $446 billion in new spending.
5.) $1.3 Trillion in Rosier Economic Assumptions – $1.3 trillion of the $1.6 trillion difference between the CBO and OMB’s estimate of the President Budget is due to OMB’s use of better economic assumptions.
 The net tax increase reduces some interest cost, such that net new outlays total $338 billion.