What does it mean for a government program to be off-budget? Q.What does it mean for a government program to be off-budget? A.The two Social Security trust funds and the postal service are “off-budget”—their spending and receipts are walled off from the rest of the budget. Putting Social Security and the post office off-budget shields them from some pressures, but policymakers often focus on the unified budget that includes them. A few other agencies are excluded because of their independence (e.g., the Federal Reserve) or private character (e.g., government-sponsored, privately owned entities and funds managed for private citizens). Read more about What does it mean for a government program to be off-budget?
How accurate are long-run budget projections? Q.How accurate are long-run budget projections? A.Long-run budget projections depend on assumptions about future economic, legislative, and demographic conditions. As a result, those projections are highly uncertain. Nonetheless, they provide useful information. Under a wide range of assumptions, those projections indicate the public debt will increase faster than economic growth in coming decades. Read more about How accurate are long-run budget projections?
How did the TCJA affect the federal budget outlook? Q.How did the TCJA affect the federal budget outlook? A.The Tax Cuts and Jobs Act cut taxes substantially from 2018 through 2025. The resulting deficits are adding $1 to $2 trillion to the federal debt, according to official estimates from before and shortly after enactment. The debt increase will be larger if some of TCJA’s temporary tax cuts are extended. Read more about How did the TCJA affect the federal budget outlook?