Chart of the Day

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.

OK, it’s not really a chart.  It’s a table.  But it comes from CBPP and it takes a closer look at the recent headlines screaming that deficit projections have risen from $7 trillion to $9 trillion.  Long story short, it’s not true.

Here’s why.  The lower number is from the CBO and relies on its “baseline” budget calculation.  This is an estimate of what would happen if current law remains unchanged forever, and as such it bears little resemblance to reality.  In reality, the Bush tax cuts aren’t going to disappear in 2011, Medicare reimbursements aren’t going to be suddenly slashed, and the Alternative Minimum Tax won’t be left alone to gobble up ever more income.  As usual, the law will be changed to take care of all these things, just like it is every year.

So if you take a look at what the deficit would be under current real-life policies, and compare it to estimates under Obama’s proposed policies, what do you get?  As the table below shows, the real-life deficit isn’t $7 trillion, it’s more like $11 trillion.  And the Obama deficit isn’t $9 trillion, it’s about $10.5 trillion once adjustments are made so that it can be compared to CBO estimates on an apples-to-apples basis.  So the bottom line is simple: properly accounted for, the deficit actually goes down when you compare Obama’s budget proposals to current policy, not up.

All the grisly details are here.  Warning: not for the faint of heart.

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily bluster—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily bluster—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate