Congressional Budget Office: If Tax Cuts Extended, AMT Indexed, 2009 Estate Tax Law Extended, War Funding Pursuant to President's Proposed 2011 Budget Assumed, Deficit Will Increase

The Congressional Budget Office (the "CBO") has prepared a report to House Budget Committee ranking minority member Paul Ryan.  In the report, the CBO maintains that if (i) the tax provisions of EGTRRA and JGTRRA, except for those related to estate and gift taxes, are extended; (ii) the 2009 estate and gift law becomes permanent; (iii) the 2009 alternate minimum tax exemption and income bracket amounts are indexed for inflation after 2009; and (iv) war funding as specified in President Obama's proposed budget for 2011 is assumed, the deficit will increase to $1.2 trillion in 2020. 

See also CBO Estimated Deficit Increases Assuming Extension of Tax Cuts, 2010 TNT 38-23, February 26, 2010.

Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.