CBO: Deficit Can Be Cut 75% By Congress Doing Nothing

Revising its numbers from August, CBO now says the current fiscal year budget deficit will hover around $1.1 trillion.  In August the budget office assumed the deficit would shrink below one-trillion for the first time since 2008.  Not anymore says CBO:

CBO projects a $1.1 trillion federal budget deficit for fiscal year 2012 if current laws remain unchanged. Measured as a share of the nation’s output (gross domestic product, or GDP), that shortfall of 7.0 percent is nearly 2 percentage points below the deficit recorded in 2011, but still higher than any deficit between 1947 and 2008. Over the next few years, projected deficits in CBO’s baseline decline markedly, dropping to under $200 billion and averaging 1.5 percent of GDP over the 2013–2022 period.

CBO also lays out some interesting facts.  The most effective way to deal with the deficit is to allow the Bush Tax Cuts to expire.  Their chart makes this very clear.

Let's get this as straight as possible.  The best thing for Congress to do is nothing.  Just sit back, allow current law to expire and the nation's budget will go from a trillion dollar deficit to a $200 billion deficit in two years.  In order to cut the deficit by 75% Congress needn't do one single thing.  This should be a no brainer.