Friday, June 28, 2013

US Long Term Budget Projections Greatly Improved

Tax increases and reductions in spending have improved the long term debt to GDP ratio substantially.  Most of the cuts in spending come from a decline in healthcare price inflation.  The assumptions in the plan are generally conservative.  It is assumed that Congress will not end corporate tax breaks and that scheduled payment cuts to physicians will not happen.  The debt to GDP ratio is still a concern, but it no longer looks like a disaster.

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