How accurate are the Congressional Budget Office’s (CBO’s) revenue projections? To answer that question, the CBO annually assesses the quality of its past projections and identifies factors that might have led to under- or overestimates of revenues. In a report, the CBO said its projected $4.4 trillion for federal revenues in 2022 was too low, missing the mark by $497 billion (or about 10%). “Differences between actual economic activity in 2022 and CBO’s projections for that year were a significant source of error, as the combined effects of the economic disruption in 2020 and legislation enacted in response continued to affect the economy,” it said. Read the report: https://bit.ly/3vVL3V1
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