The next few weeks could have a major impact on America’s fiscal future, with a vote on tax reform coming soon.
Both defense and non-defense discretionary spending are already projected to shrink to historically low levels and are not the primary drivers of deficits.
Mac Thornberry (R-TX) raised some eyebrows with his recent statement that limiting defense spending to the Fiscal Year 2016 sequester caps increases national insecurity.
This morning, the trustees of Social Security released their annual report, which includes an assessment of the program’s financial health. The Social Security actuaries estimate that under current law, the Old-Age and Survivor’s Insurance (OASI) Trust Fund will be depleted in 2034 (one year earlier than projected last year), while the Disability Insurance (DI) Trust Fund will be depleted in late 2016, unchanged from last year.
We recently blogged about the various types of federal tax expenditures, which in total, will cost about $1.4 trillion in Fiscal Year 2014. In this post, we highlight ten of the largest, each of which policymakers will likely need to consider in the context of comprehensive tax reform.
Earlier today, the non-partisan Congressional Budget Office released its 2014 Long-Term Budget Outlook, an annual report that projects government spending, tax revenue, deficits, and debt over the next 25 years. Like last year’s report, today’s report paints a sobering picture of our nation’s long-term fiscal health and reinforces the need for bipartisan action to reduce our long-term debt.
Several recent comprehensive tax reform proposals, including plans put forward by House Ways and Means Chairman Dave Camp (R-MI) and the Bipartisan Policy Center’s Domenici–Rivlin Debt Reduction Task Force, have called for lower corporate and individual rates alongside limiting tax expenditures to broaden the tax base. But what exactly are tax expenditures?