President Obama’s 2013 budget would add $3.5 trillion to annual deficits through 2022, according to a new estimate from the Congressional Budget Office (CBO).
It also would raise the deficit next year by $365 billion, according to the nonpartisan office.
The CBO estimate is in sharp contrast to White House claims last month that the Obama budget would reduce deficits by $3.2 trillion over the next decade.
The differences between the estimates from CBO and the White House budget office are attributable to different baselines and economic assumptions, and a big reason CBO expects the deficit to spike sharply under Obama’s budget is that CBO’s baseline assumes all the Bush-era tax rates will expire at the end of 2012.
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