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To help offset the budget cost of lower corporate rates, Congress is considering altering the treatment of publicly traded partnerships.
But those are almost offset, the budget officials said, by declines in revenue from sales and income taxes, which provide more than three-fourths of the state's money.
Yet the additional money they want to take from health workers pay is not going into making their pensions more sustainable; it's not even going towards offsetting the costs to employers ie the NHS – it's going straight into the treasury, to offset the budget deficit.
Partially or completely exempting from federal taxes all of the profits American corporations earn abroad that they list in their financial records, including funds from offshore tax havens, potentially increasing their profits by billions of dollars at the cost of billions in lost tax revenue that could be used to offset the budget's massive social service cuts.
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This view was predicated on the idea that other factors can offset the blow from budget cuts.
That is a particularly weighty question, given the urgent need for tax revenue to offset the ballooning federal budget deficit.
The President's agenda included a huge increase for defense which would largely offset the savings from budget cuts in domestic programs.
The reason is that with interest rates stuck near zero, there is no room to lower them when fiscal policy is tightened, and thus no way to offset the pain of budget cutbacks.
In his budget, however, he does revive a number of proposed tax increases for upper-income individuals, financial institutions, oil and gas companies, insurance companies and multinational corporations that Congress has rejected before; the new revenues mostly would offset the costs of budget items that have bipartisan support but typically are just added to deficits.
In their 2010 analysis IMF economists reckoned that governments cutting deficits by 1% of GDP could expect a short-run hit to GDP growth of about half a percentage point: a multiplier of about 0.5.This view was predicated on the idea that other factors can offset the blow from budget cuts.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com