Financing the national debt itself will become a major share of federal spending in the next few decades.
The CBO projects that interest payments on the debt will cost $71 trillion over the next 30 years and will consume more than one-third of all federal revenue by the 2050s.
The group responded to the new CBO report by renewing its calls for a bipartisan fiscal commission to consider plans for stabilizing the debt.
As a share of GDP, the national debt reached a record high of 106 percent during World War II. The CBO projects the record to be broken in 2029, and the debt will keep climbing-to 181 percent of GDP by 2053.
Do you really believe that no Congress or president will hike spending without offsetting tax increases in the next three decades? Under an alternative scenario in which the Trump administration's tax cuts are extended and federal spending grows at the same rate as the economy, the Committee for a Responsible Federal Budget projects the debt to hit 222 percent of GDP by 2053.
That's the result of the debt ceiling deal struck last month between Congress and the White House.
Still, the modest decline in future deficits mostly serves to illustrate the daunting size of the federal government's debt problem.
No comments:
Post a Comment