Spending Effects of the Fiscal Cliff Deal
Created on January 10, 2013
Extending unemployment benefits
Delaying sequestration by two months
Farm bill extension
Reducing BCA caps on spending, FY 2013–2014
Medicare spending offsets
a The Congressional Budget Office (CBO) shows the farm bill extension as having no cost because the CBO baseline assumes the extension even though the authorization has expired.
b The legislation offsets another $12 billion through a revenue timing shift from traditional tax-deferred retirement plans to Roth accounts.
c The CBO analysis also shows $276.5 billion in higher spending that merely results from refundable tax credits included in the extension of current tax policies in the fiscal cliff agreement.
Source: Heritage Foundation calculations based on Congressional Budget Office, “Estimate of the Budgetary Effects of H.R. 8, the American Taxpayers Relief Act of 2012, As Passed By The Senate on January 1, 2013,” January 1, 2013, http://www.cbo.gov/sites/default/files/cbofiles/attachments/ American%20Taxpayer%20Relief%20Act.pdf (accessed January 9, 2013).
Billions of dollars