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Fiscal Consolidation in America: The Policy Options

Author

Listed:
  • Rosanne Altshuler

    (Rutgers University, Department of Economics)

  • Barry Bosworth

    (Brookings Institution)

Abstract

This paper is focused on the options for reducing the U.S. fiscal deficit in the aftermath of the financial crisis. The first part of the paper is devoted to an assessment of the economic outlook and the impact of the financial crisis on the medium-term fiscal balance of the federal government. Is there a short-term trade-off between the need for further fiscal stimulus and deficit reduction and how should it be managed? The second part of the paper examines the options for fiscal consolidation on both the expenditure and revenue sides of the budget.

Suggested Citation

  • Rosanne Altshuler & Barry Bosworth, 2011. "Fiscal Consolidation in America: The Policy Options," Departmental Working Papers 201120, Rutgers University, Department of Economics.
    • Handle: RePEc:rut:rutres:201120
    as

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    File URL: http://www.sas.rutgers.edu/virtual/snde/wp/2011-20.pdf
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    References listed on IDEAS

    as
    1. Congressional Budget Office, 2011. "Budget and Economic Outlook: Fiscal Years 2011 to 2021," Reports 21999, Congressional Budget Office.
    2. Bird, Richard M. & Mintz, Jack M. & Wilson, Thomas A., 2006. "Coordinating Federal and Provincial Sales Taxes: Lessons From the Canadian Experience," National Tax Journal, National Tax Association;National Tax Journal, vol. 59(4), pages 889-903, December.
    3. Rosanne Altshuler & Benjamin Harris & Eric Toder, 2011. "Capital Income Taxation and Progressivity in a Global Economy," Departmental Working Papers 201122, Rutgers University, Department of Economics.
    4. repec:cbo:report:219994 is not listed on IDEAS
    5. Clausing, Kimberly A., 2009. "Multinational Firm Tax Avoidance and Tax Policy," National Tax Journal, National Tax Association;National Tax Journal, vol. 62(4), pages 703-725, December.
    6. repec:cbo:report:219995 is not listed on IDEAS
    7. repec:cbo:report:219996 is not listed on IDEAS
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    More about this item

    Keywords

    budget; deficit; fiscal consolidation;
    All these keywords.

    JEL classification:

    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

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