The Congressional Budget Office on Friday confirmed that President Obama’s jobs bill would be fully paid for over ten years and also gave its seal of approval to Senate Democrats' version that includes a surtax on millionaires.
The CBO said that the original Obama stimulus bill would involve $447 billion in tax cuts and new spending—the same estimate given by the administration. It said the bill would raise $450 billion over ten years. The result is a $3 billion decrease in deficits over ten years.
Senate Majority Leader Harry ReidHarry ReidHopes rise for law to expand access to experimental drugs If Gorsuch pick leads to 'crisis,' Dems should look in mirror first Senate confirms Mulvaney to be Trump’s budget chief MORE's office highlighted that the CBO affirmed 60 percent of the stimulus comes in the form of tax cuts rather than spending and that most of the tax relief is for workers.
CBO also said that the bill “could have a noticeable impact on economic growth and employment in the next few years.” CBO under its own rules is prevented from factoring in increased unemployment, and the possible increased tax revenue that could result into its cost estimate.
The CBO did say that the original bill would increase the short term budget deficit in 2012 by $288 billion. The fact was seized upon by the office of Senate Minority Leader Mitch McConnellMitch McConnellPoll: Senate should confirm Gorsuch Cardboard cutouts take place of absent lawmakers at town halls GOP groups ramp up pressure on lawmakers over ObamaCare MORE (R-Ky.).
The GOP says the Obama package is a permanent tax increase in exchange for temporary stimulus that is unlikely to reduce 9.1 percent unemployment.
This story was updated at 5:05 p.m.