Over the next 10 years, the cumulative deficit under the President’s proposals would be $2.9 trillion less than the $12.4 trillion in CBO’s baseline. The deficit would average 3.7 percent of GDP, CBO estimates.
CBO and JCT project that the federal subsidies, taxes, and penalties associated with health insurance coverage for people under age 65 will result in a net subsidy from the federal government of $685 billion in 2018.
CBO works with the staff of the Joint Committee on Taxation each year to estimate the budgetary effects of the changes to spending programs and the tax code proposed in the President’s budget.
At recent hearings, Members of Congress questioned how cost-sharing reductions had been incorporated in CBO’s baseline budget projections. Given the limited time to answer those questions, this blog post provides additional information.