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Nationís Long-Term Fiscal Outlook: March 2009 Update
Ralph Dawn (ed)
The govít. publishes long-term fiscal simulations of what might happen to fed. deficits and debt levels under varying policy assumptions. There are two simulations: (1) "Baseline Extended" follows the Sept. baseline estimates for the first 10 years and then holds revenue and spending other than large entitlement programs constant as a share of GDP; and (2) The "Alternative" simulation is based on historical trends and recent policy preferences. Discretionary spending grows with GDP rather than inflation during the first 10 years, Medicare physician pay. rates are not reduced, and all expiring tax provisions are extended until 2019 and then revenue is brought back to about its historical level. This update incorp. March 2009 baseline projections. Illus.
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