New York (CNNMoney.com) - The Congressional Budget Office on Thursday offered economic projections that will inform lawmakers tackling one of the most controversial issues they face: how to balance the need to help the economy and curb U.S. debt.
If the Bush tax cuts for the majority of Americans and stimulus spending are allowed to continue, economic growth could be higher and unemployment lower in the near term than if the tax cuts and stimulus efforts expired as scheduled, CBO projected. But deficits would be higher.
"[It would provide] a considerable boost to economic activity in 2011 and beyond for a few years," said CBO Director Douglas Elmendorf. "Over time, [however,] the negative consequences of very high federal borrowing build up."