Why Is the CBO Concocting a Phony Debt Crisis?

All the serious people in Washington know we have a debt problem. “Rapidly Growing Debt Threatens America’s Economic Future” blared a typical press release from Senate Budget Committee chairman Mike Enzi. “It is clear from [Congressional Budget Office] analysis that rapidly growing public sector debt threatens America’s economic future,” he said.

There’s just one problem. The numbers relied upon by Enzi and far too many others inside the Beltway, including the Congressional Budget Office itself, are completely bogus. The methodology used by the CBO to create these projections exaggerates the federal government’s long-term debt projection by as much as 440 percent, creating a phony fiscal crisis where none exists.

CBO: Tax Breaks Cost $12 Trillion Over Decade, Benefit Most Wealthy

WASHINGTON, May 29 (Reuters) - The top ten U.S. tax deductions, credits and exclusions will keep $12 trillion out of federal government coffers over the next decade, and several of them mainly benefit the wealthiest Americans, a new study from the Congressional Budget Office shows.

The top 20 percent of income earners will reap more than half of the $900 billion in benefits from these tax breaks that will accrue in 2013, the non-partisan CBO said on Wednesday.