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This paper characterizes the "optimal" budget window.
In recent years, the United States has evaluated policy changes using a multi-year budget window.
An appropriately designed budget window eliminates the incentive to use sunsets to avoid budget restrictions.
During the 10-year budget window, the debt would start to shrink as a proportion of the economy.
That means the tax number is bound to grow each year we move into a different budget window.
-- Will that financing be adequate to underwrite the cost of expanded coverage -- not only within the 10-year budget window but beyond?
The bill's main components would start in 2020, and the funding it envisions would last until 2026, limited by the 10-year budget window.
The latest CBO projections show spending rising back to Reagan era levels towards the end of the 10-year budget window.
And the process does not allow for the passage of legislation that raises the deficit outside the 10-year budget window via a simple majority.
"Over the 10-year budget window, I don't see a problem," said Glenn Hubbard, chairman of the White House's Council of Economic Advisers.
What this means is that very tiny changes in economic assumptions, when projected out over a 10-year budget window, can quickly add up to real money.
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