The House Budget Committee chairman’s budget proposal will have big ramifications for the economy, particularly for Americans who are in the bottom third of the income distribution, according to the latest report from the Committee for a Responsible Federal Budget.
That’s because of the effects of the sequester, the sequestration-related spending cuts, the budget impasse, and other factors.
The committee’s report, which was released on Wednesday, also noted that the deficit has grown by $1.3 trillion since the start of the year.
The sequester-related cuts to domestic discretionary spending have cost the economy $3.3 billion a month in economic output, the committee said.
The cuts also have forced some of the nation’s wealthiest Americans to find alternative ways to make ends meet, with some of them leaving their homes.
The deficit, however, has shrunk by $300 billion in the past year, according the report.
The Budget Committee report says the sequestrations have resulted in the elimination of about 2 million jobs, as well as the loss of over 2 million federal jobs.
The report also said that while the federal government has been able to continue its efforts to make up for lost revenue, “there is no guarantee that this would have happened without sequestration.”
The sequesters, which were enacted in January and March of 2013, were meant to prevent the federal deficit from growing too large over the next decade.
In total, the sequesters cut about $1 trillion in revenue, and about $700 billion from spending.
The biggest losers were the federal employees, who lost nearly half of their jobs in 2013.
The government, meanwhile, saw its payrolls shrink by 2.7 million jobs over the past three years, according a new report from The New York Times.
The U.N. estimated that the sequurations had “shattered the very fabric of the American economy.”
The committee also released a report on Tuesday showing that the budget stalemate has put more pressure on the debt-ridden U.K. to borrow heavily to fund its debt.
The British government owes $14.8 trillion, according its latest accounts.
It’s already borrowing $3 billion more than it needs to repay debt.