August 23, 2012
During periods of weak economic activity, the Congress often considers legislation aimed at boosting output and employment. The policies considered include providing funds to states and localities, supporting people in need, purchasing goods and services, providing temporary tax relief for individuals and businesses, and making changes in government regulatory policies. CBO analyzes the probable effects of such policies.
Nov 2012 - Significant tax increases and spending cuts are slated to take effect in January 2013, sharply reducing the federal budget deficit and causing, by CBO’s estimates, a decline in economic output and an increase in unemployment.