Peterson Foundation Statement on 2018 Deficit of $779 Billion

NEW YORK — Michael A. Peterson, Chairman and CEO of the Peter G. Peterson Foundation, commented today following the Treasury Department announcement of a fiscal year 2018 deficit of $779 billion, the largest deficit since 2012. Peterson said:
“As troubling as this year’s deficit is, it’s just the beginning of large and growing deficits as far as the eye can see. Trillion-dollar annual deficits are expected to return as soon as next year and continue indefinitely, driving historically high and dangerous levels of debt.
“This is a uniquely imbalanced time in our fiscal history, with deficits rising despite a growing economy and low unemployment. In fact, the U.S. is the only developed country in the world whose debt-to-GDP ratio is growing. This is a reflection of just how irresponsible our budget policies have become.
“With interest costs rising faster than any other part of the budget, and clear demographic trends shaping our future, lawmakers should help America address the seriousness of our fiscal challenges and lay the groundwork to put us on a better path.”
Further Reading
Rising National Debt Increases Costs for American Families and Businesses
Federal fiscal policy is a significant but often overlooked factor in the affordability of vehicles, homes, and small business loans.
Payroll Taxes: What Are They and What Do They Fund?
Payroll taxes fund social insurance programs including Social Security and Medicare and are the second-largest source of revenues for the federal government.
Tax Reform Alone May Not Be Enough to Stabilize the National Debt
A new report from the Tax Foundation breaks down the drivers of the fiscal imbalance and concludes that tax increases alone cannot solve the problem.