Fiscal Restraint (CBO)

Economic effects of reducing the fiscal restraint that is scheduled to occur in 2013 by Congressional Budget Office (CBO), (05/2012). “In fact, under current law, increases in taxes and, to a lesser extent, reductions in spending will reduce the federal budget deficit dramatically between 2012 and 2013 –  a development that some observers have referred to as a ‘fiscal cliff’ – and will dampen economic growth in the short term. CBO has analyzed the economic effects of reducing that fiscal restraint. It finds that reducing or eliminating the fiscal restraint would boost economic growth in 2013, but that adopting such a policy without imposing comparable restraint in future years would have substantial economic costs over the longer run.” http://1.usa.gov/JR7ONH