Deficit Reduction and Budget Negotiations

CBPP Releases New Chart Book

Deficit FallsThe House and Senate have convened a conference committee that will likely focus on whether (and how) to replace some or all of the sequestration cuts in place for fiscal year 2014 and perhaps 2015, rather than on a broader long-term budget plan.

The 2011 Budget Control Act (BCA) set tight limits on discretionary (non-entitlement) funding through 2021 and called for additional annual cuts — known as sequestration — if Congress failed to agree on a deficit-reduction plan later in 2011.

The cuts are evenly divided between non-defense and defense programs, which will be cut by a combined $109 billion each year. Most, but not all, of the cuts come from discretionary programs.

The Center for Budget and Policy Priorities (CBPP) has created a new chart book illustrates:

  • What has happened to deficits since the recession hit (Part I);
  • What policymakers have done to reduce deficits (Part II);
  • Why vulnerable Americans have much at stake in the current talks (Part III);
  • Why the weak economy should be part of the budget negotiations (Part IV);
  • Why tax breaks are a potential source of substantial deficit savings (Part V); and
  • How policymakers should evaluate deficit-reduction proposals (Part VI).

Click here to view the full chart book.