A $1.3 trillion 2018 spending bill was approved last month with bipartisan support as a result of that deal.
A new report warns that the United States is heading for $1 trillion annual federal deficits, and the Congressional Budget Office says that's going to radically raise the nation's debt in just a decade.
The budget deficit will grow to 804 billion dollars this fiscal year, which ends on September 30, up from 665 billion dollars in fiscal 2017, according to the CBO's forecast.
Jeff Stein, The Washington Post •.
The Congressional Budget Office on Monday said the federal budget deficit will total $804 billion this year, up from $665 billion last year.
Democrats seized on the report to blast the GOP tax law and portray Republicans as fiscally irresponsible.
The government is slated to spend $4.1 trillion this year: $2.5 trillion of that on entitlements, $1.3 trillion on defense and domestic discretionary spending such as education and the environment, and $316 billion on interest payments on the debt.
Despite the increased debt burden, the CBO predicts the real GDP will rise to 3.3. percent in 2018 with the average growth over the next decade to be at 1.9 percent. No mention of the "voodoo economics" idea of dodgy economists that lower taxes generates higher spending and lower deficits. The deficit is how much Washington's spending exceeds its revenues.
The national debt, which has topped $21 trillion, is expected to soar to more than $33 trillion in 2028.
Projected deficits over the 2018-2027 period have increased markedly since June 2017, when CBO issued its previous projections. "The economy is improving, with the help of tax reform, but we now must get serious about spending reform and cuts".
House Republican leaders have scheduled a vote this week on a Constitutional amendment to require a balanced federal budget.
It's not insane to think Congress could let it come to that. This will mean the government will be forced to pay even more to finance the more than $14 trillion in Treasury debt held by investors. After that, however, the CBO expects economic growth to slow, largely due to slower growth in the labor force.
Trump has routinely ignored the debt and deficit.
But if warnings of a future fiscal crisis turn out to be true, lawmakers might be forced to take painful steps, Hall warned, that would be more draconian than if they tackled the deficit now. "The longer you wait, the more draconian the measures have to be to fix the problem".
Even then, however, budget deficits north of $2 trillion might not be far off, she noted.
Economists from both sides of the aisle agree that a debt crisis is looming. Bernie Sanders, I-Vermont. "It's just conjecture". Those surpluses turned to deficits after tax cuts under President George W. Bush, as well as sharp increases in military spending for the wars in Afghanistan and Iraq.
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