The military services—the Army, Navy, Air Force, and Marine Corps—use modeling techniques to inform parts of their annual budget requests.
Yesterday I spoke to the National Economists Club on our recently released Budget and Economic Outlook. My remarks reiterated much of what I said in several of last week's blog posts:
More than 2 million service members have deployed in support of overseas contingency operations (OCO) in Iraq and Afghanistan since October 2001.
The federal government accumulated a budget deficit of $349 billion for the first four months of fiscal year 2012, CBO estimates in its latest Monthly Budget Review, $70 billion less than the shortfall recorded for the same period last year.
Do you receive a tax deduction for the interest paid on your mortgage or for the taxes you pay to your state and local governments? Would you think about those deductions in the same way if instead of seeing a reduction in taxes for those items the federal government instead simply sent you a check for the same amount?
The Wall Street Journal has just published an article entitled “Congress’s Number Cruncher Comes Under Fire.” Here’s our view:
We have received many questions about whether potential reductions in spending for overseas contingency operations (OCO), such as U.S. military operations in Afghanistan, can be considered as offsets to reductions in taxes or additional spending for Medicare or other programs. In this blog post, I will try to explain the issues involved.