Statement from Foundation President, Michael A. Peterson, on CBO’s Long-Term Budget Outlook
“The message of this CBO report is clear — the nation’s current fiscal path is unsustainable over the long term. A federal debt level of 200% of GDP within 25 years would place an unthinkable burden on the next generation — trillions in interest payments would crowd out much needed investments in our economy, and the safety net could be shredded as resources become scarce.
CBO also recently warned that the confluence of expiring tax cuts and automatic spending reductions occurring at the end of the year could lead to another recession if our current course isn’t altered. Our elected leaders should use the need to act on these year-end events as an opportunity to put in place a comprehensive bipartisan fiscal plan that gets implemented when the economy recovers. Agreeing on a plan that shows that America is getting its fiscal house in order would give the economy a badly needed boost of confidence in the short term, and put America on a much more sustainable and prosperous path for the long term.”
Further Reading
United States Is Borrowing at a Higher Rate than the Global Average, Warns IMF
New IMF reports serve as a warning to all countries that global fiscal and economic conditions are veering into dangerous territory.
News from the Quarterly Treasury Refunding Statement
As borrowing has risen, the Treasury has generally been increasing the proportion of bills (maturity of one year or less) in its portfolio of marketable securities.
Quiz: How Much Do You Know About the U.S. Tax System?
The lengthy and complex United States tax code can be difficult to understand. Take our quiz to see how much you really know.