CBO Unveils Long-Term Budget Outlook

The Congressional Budget Office has released its long-term budget outlook for 2012. Like most CBO forecasts, it projects that U.S. debt will soar if Congress continues delaying action to consolidate the federal budget. But it concludes that under current law, projected mid-term deficits will completely disappear — though higher taxes and spending cuts scheduled to take effect automatically at the beginning of 2013 would likely cripple the economy.