Thank Joe Biden Democrats
2024-06-19 09:13:57 UTC
The United States is on a pace to add trillions of dollars to its national
debt over the next decade, borrowing money more quickly than previously
expected, at a time when big legislative fights loom over taxes and
spending.
The Congressional Budget Office said on Tuesday that the U.S. national
debt is poised to top $56 trillion by 2034, as rising spending and
interest expenses outpace tax revenues. The mounting costs of Social
Security and Medicare continue to weigh on the nations finances, along
with rising interest rates, which have made it more costly for the federal
government to borrow huge sums of money.
As a result, the United States is expected to continue running large
budget deficits, which are the gap between what America spends and what it
receives through taxes and other revenue. The budget deficit in 2024 is
projected to be $1.9 trillion, up from a forecast earlier this year of
$1.6 trillion. Over the next 10 years, the annual deficit is projected to
swell to $2.9 trillion. As a share of the economy, debt held by the public
in 2034 will be 122 percent of gross domestic product, up from 99 percent
in 2024.
The new projections come as lawmakers are gearing up for a big tax and
spending battle. Most of the 2017 Trump tax cuts will expire in 2025,
forcing lawmakers to decide whether to renew them and, if so, how to pay
for them. The United States will also again have to deal with a statutory
cap on how much it can borrow. Congress agreed last year to suspend the
debt limit and allow the federal government to keep borrowing until next
January.
Those fights over tax and spending will be taking place at a time when the
countrys fiscal backdrop is increasingly grim. An aging population
continues to weigh on Americas old-age and retirement programs, which are
facing long-term shortfalls that could result in reduced retirement and
medical benefits.
Both Democrats and Republicans expressed concern about the national debt
as inflation and interest rates soared over the last few years, but
spending has been difficult to corral. The C.B.O. report assumes that the
2017 tax cuts are not extended, but that is highly unlikely. President
Biden has said he will extend some of the tax cuts, including those for
low- and middle-income earners, and former President Donald J. Trump has
said he will extend all of them if he wins in November. Fully extending
the tax cuts could cost around about $5 trillion over 10 years.
The bigger projected deficits were largely driven by the Biden
administrations decision to cancel more than $100 billion student loan
debt, the cost of new aid packages for Ukraine and Israel and higher-than-
expected outlays for Medicaid.
https://www.nytimes.com/2024/06/18/us/politics/us-debt-economy.html
debt over the next decade, borrowing money more quickly than previously
expected, at a time when big legislative fights loom over taxes and
spending.
The Congressional Budget Office said on Tuesday that the U.S. national
debt is poised to top $56 trillion by 2034, as rising spending and
interest expenses outpace tax revenues. The mounting costs of Social
Security and Medicare continue to weigh on the nations finances, along
with rising interest rates, which have made it more costly for the federal
government to borrow huge sums of money.
As a result, the United States is expected to continue running large
budget deficits, which are the gap between what America spends and what it
receives through taxes and other revenue. The budget deficit in 2024 is
projected to be $1.9 trillion, up from a forecast earlier this year of
$1.6 trillion. Over the next 10 years, the annual deficit is projected to
swell to $2.9 trillion. As a share of the economy, debt held by the public
in 2034 will be 122 percent of gross domestic product, up from 99 percent
in 2024.
The new projections come as lawmakers are gearing up for a big tax and
spending battle. Most of the 2017 Trump tax cuts will expire in 2025,
forcing lawmakers to decide whether to renew them and, if so, how to pay
for them. The United States will also again have to deal with a statutory
cap on how much it can borrow. Congress agreed last year to suspend the
debt limit and allow the federal government to keep borrowing until next
January.
Those fights over tax and spending will be taking place at a time when the
countrys fiscal backdrop is increasingly grim. An aging population
continues to weigh on Americas old-age and retirement programs, which are
facing long-term shortfalls that could result in reduced retirement and
medical benefits.
Both Democrats and Republicans expressed concern about the national debt
as inflation and interest rates soared over the last few years, but
spending has been difficult to corral. The C.B.O. report assumes that the
2017 tax cuts are not extended, but that is highly unlikely. President
Biden has said he will extend some of the tax cuts, including those for
low- and middle-income earners, and former President Donald J. Trump has
said he will extend all of them if he wins in November. Fully extending
the tax cuts could cost around about $5 trillion over 10 years.
The bigger projected deficits were largely driven by the Biden
administrations decision to cancel more than $100 billion student loan
debt, the cost of new aid packages for Ukraine and Israel and higher-than-
expected outlays for Medicaid.
https://www.nytimes.com/2024/06/18/us/politics/us-debt-economy.html