The nonpartisan Congressional Budget Office reinforced what private-sector economists have been saying for months: The best proposals to spur the economy would cost the government but prove better at quickly creating jobs than pursuing an anti-regulatory policy as proposed Republicans in Congress.

CBO Director Douglas Elmendorf said extending unemployment benefits or payroll tax breaks to those who are most likely to spend the money, as well as providing as tax credits to companies that hire new workers, are among the types of policies that could best boost the economy and create jobs. Rolling back regulations would not have the same immediate jolt, according to a new report.

"The economic effects of certain changes in regulatory policies probably would be too small or would occur too slowly to significantly alter overall output or employment in the next two years," Elmendorf wrote this week on the CBO blog.

The CBO's analysis comes as Congress is deeply divided over the best approach for strengthening the sluggish economy at a time when jobs are the top issue on voters' minds. The congressional super committee is also struggling to reduce deficits. The report offered a gloomy outlook under current policies, with an estimated 9% unemployment rate through 2012 and economic growth lower than potential.