Is the CBO Playing Politics?

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.

When the CBO estimates future federal budget deficits, it uses two scenarios. The first is the “current law” baseline scenario, which is just what it sounds like: it assumes that everything unfolds as if current law stays in effect forever. Everyone understands that this is a fantasy.

So they also have an “alternative scenario.” If, for example, Congress “fixes” the alternative minimum tax every year without fail, then CBO assumes it will continue doing this even if Congress never permanently changes the underlying law. Ditto for several other things that Congress tends to deal with on an ad hoc basis every year.

But this year CBO has done something new: it has assumed that virtually none of the cost savings in the recently passed healthcare reform bill will take effect. Brad DeLong, assuming the guise of “Technocrat” in a debate in which he plays all sides, cries foul:

The alternative baseline is now based on judgments about the strength of the doctors’ lobby and about the configuration of American rent-seeking politics rather than being merely an attempt to construct an honest baseline. It’s not clear to me that CBO has the expertise to make such judgments. It is clear to me that if it is going to make them, it needs to back them up much more comprehensively than it has done.

The CBO does itself a disservice if it starts getting too heavily involved in political calculations like this. They’ve already made their best estimates about what effect healthcare reform will have on the federal budget, and if they want to change those estimates they should do so openly. But simply assuming that a future Congress will kill all cost savings measures with no special evidence to back that up? That’s just not their job. CBO is supposed to be an honest broker, not a Washington Post op-ed columnist.

FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2020 demands.

FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2020 demands.

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate