The nonpartisan scorekeeper for Congress says the legislation passed earlier this week to avert the "fiscal cliff" could still leave in place deficits averaging more than $900 billion a year over the coming decade if Congress fails to follow its tax increases up with spending cuts.

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The Congressional Budget Office also says the measure should reduce the risk of recession this year by not slamming the economy with a huge tax increase.

The post cites a CBO study from August predicting a $10 trillion deficit over the next 10 years if Congress simply followed existing tax and spending policies instead of following the laws that threatened a cliff of automatic tax increases and spending cuts.

The fiscal cliff law would cut $700 billion to $800 billion, CBO said.

 

(Copyright 2013 by The Associated Press. All Rights Reserved.)

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