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Diane Publishing Books
Nationís Long-Term Fiscal Outlook: September 2008 Update
Ralph Dawn (au)
Since 1992, the govít. has published long-term fiscal simulations of what might happen to federal deficits and debt levels under varying policy assumptions. There are two simulations: (1) "Baseline Extended" follows the Congressional Budget Office's (CBO) September 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 payment rates are not reduced and all tax provisions are extended until 2018 and then revenues are brought back to their historical level.
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