Thursday, June 23, 2011

US Debt Problem Goes Away If Congress Makes No Change to Current Law



This graph shows that the US long term debt problem would disappear if government did nothing new. The CBO projection of the extended baseline assumes current law. Under current law the Bush tax cuts go away and payments from Medicare to doctors remain as they are. The line showing unsustainable debt includes the Bush tax cuts and the payments to doctors increases. That is the most politically realistic line and that is the problem.

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