Jagadeesh Gokhale and Kent Smetters argue that short-term deficit projections are inadequate to address the growing fiscal imbalance in Medicare and Social Security. At the very least, the OMB should return to 10-year projections rather than their current 5-year horizon.
The White House Office of Management and Budget (OMB) recently projected that the US federal budget will see an unprecedented $691 billion deterioration in its budget situation -- moving from record surpluses of $236 billion in 2000 to record deficits of $455 billion in 2003. This paper outlines some of the basic characteristics of the current situation and places them in the context of recent history.
The IRS is planning a "pilot" project to require "pre-certification" of EITC recipients beginning in August 2003. The project is targeted at filers who claim children who are not their own. Comments on the form that requires documentation or affidavits proving residency of children with the claiming tax filer for six months of the tax year were due July 14. Comments on the overall process are can be made through December 31, 2003. See the IRS announcement for more information.