Bloomberg News

CBO Says Senate Adds $4 Trillion Debt Next to No Action

January 01, 2013

The U.S. budget bill passed by the Senate early today would add $4 trillion to U.S. deficits and debt over the next decade, compared with what would happen if Congress did nothing, according to a Congressional Budget Office report today.

Most of the effects come from reinstating income tax cuts that expired yesterday. According to the White House, allowing some tax cuts to expire would raise $620 billion in revenue, compared with extending all tax cuts.

The extension of unemployment benefits in the bill would cost $30.1 billion and the prevention of a cut in doctors’ payments under Medicare would cost $25.2 billion.

To contact the reporter on this story: Richard Rubin in Washington at rrubin12@bloomberg.net

To contact the editor responsible for this story: Jodi Schneider at jschneider50@bloomberg.net


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