Projected Deficits Before and After the American Taxpayer Relief Act

While the last-minute fiscal-cliff legislation left much to be desired, it managed to avert most of the near-term drag on the economy that would have occurred in the absence of an agreement as well as enact deficit reduction of $700 billion over the next 10 years. This represents a 7 percent decrease in the expected $10 trillion increase in the national debt over the next decade.