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CBO Comments on Questions Re: Fiscal Cliff Topics

The extension of expiring tax provisions in the legislation is fairly close for 2013 to the policies that we included in that report under “extend most expiring tax provisions—except for the lower rates on income above certain thresholds—and index the AMT for inflation.” Accordingly, based on the estimate in that report, that part of the recent legislation will probably increase GDP growth in 2013 by about 1¼ percentage points, compared with what would have happened if no legislation had been enacted at the beginning of January.

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