Peterson Foundation Statement on New CBO Report

Jun 18, 2024

NEW YORK — Michael A. Peterson, CEO of the Peter G. Peterson Foundation, commented today following the release of the updated 10-year Budget and Economic Outlook from the Congressional Budget Office (CBO). Peterson said:

“CBO’s new report shows that the outlook for America’s critical national debt challenge is worsening.

“In the four months since CBO’s last report, projected deficits over the next decade have risen by more than $2 trillion, and debt relative to the size of the economy is on track to hit an all-time high in just three years. The harmful effects of higher interest rates fueling higher interest costs on a huge existing debt load are continuing, and leading to additional borrowing. It’s the definition of unsustainable.

“The leaders we elect this fall will face a series of highly consequential fiscal deadlines next year, including the reinstatement of the debt limit, the expiration of the 2017 tax cuts and key decisions on healthcare subsidies, discretionary spending caps and more. CBO’s outlook assumes the 2017 tax cuts are not extended, so if lawmakers extend those without paying for them, our fiscal standing will be that much worse. All the while, the depletion dates for Social Security and Medicare draw closer and closer – along with the automatic cuts to all beneficiaries that come with them.

“This November, America’s fiscal and economic future is on the ballot, and voters are calling for leaders who will prioritize solutions to our growing debt. More than 90% of voters, across party lines, want candidates committed to addressing the debt, avoiding automatic cuts to Social Security and Medicare, and responsibly reforming the tax code. This is an important time for a national conversation on these critical fiscal and economic challenges that we must address next year, and beyond.”

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