The extension of the payroll tax cut has been widely reported and President Obama is expected to sign the bill as soon as it reaches his in-box.
Earlier this week the Congressional Budget Office (CBO) “scored” the conference agreement as required by law.
The CBO estimates that the legislation would increase the deficit by $89.3 billion over the 2012-2022 time period.
Footnote B of the Report notes that the bill would cause “a reduction in off‐budget revenues credited to the Social Security trust funds. The bill also would transfer from the Treasury to the Social Security trust funds an amount equal to that off‐budget revenue loss. The off‐budget receipt would offset the lost revenue and, thus, Title I would have no net off‐budget effect.”
It really doesn’t matter whether it’s an “on‐budget deficit change” or an “off‐budget deficit change.”
The legislation just adds another $89.3 billion to the national debt.
You can find the CBO report, including Footnote B at http://www.cbo.gov/sites/default/files/cbofiles/attachments/hr3630_2.pdf .
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