Peterson Statement on CBO Report: 30 Straight Years of Trillion-Dollar Deficits

NEW YORK — Michael A. Peterson, CEO of the Peter G. Peterson Foundation, commented today on the release of the Congressional Budget Office’s 2020 Long-Term Budget Outlook:
“CBO’s report shows 30 straight years of trillion-dollar deficits that grow and grow, leaving no doubt that we’re on a dangerous and unsustainable fiscal path.
“For many years, our national debt has been growing rapidly due to well-known structural problems, including an aging population, rising healthcare costs, and compounding interest — combined with insufficient revenues to meet our commitments. It’s tragic that interest on the debt is the fastest growing part of the budget, when we have so many other important priorities that need resources.
“Unfortunately, the coronavirus crisis has simply accelerated an already unsustainable fiscal trajectory, because of its devastating effect on the economy and the necessary legislative response.
“Once we have emerged from the pandemic, it will be more important and urgent than ever for our leaders to manage our debt, to ensure that America is more prepared for the future, better positioned for widespread and inclusive growth, and meeting our moral obligation to future generations.”
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Further Reading
What Are Refundable Tax Credits?
The cost of refundable tax credits has grown over the past several years, with the number and budgetary impact of the credits increasing.
The Six Largest Corporate Tax Expenditures
Relative to the size of the economy, the U.S. collects less revenues than many other advanced countries. Tax breaks are a contributing reason.
What’s the Difference Between the Trade Deficit and Budget Deficit?
The terms “budget deficit” and “trade deficit” can be conflated, but they are distinct measurements of important fiscal and economic concepts.