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
What Are Excise Taxes and How Do They Affect the Federal Budget?
Excise taxes are levied on specific goods or services. The largest excise taxes on the federal level are related to highways, aviation, tobacco, and alcohol.
The United States Spends More on Defense than the Next 6 Countries Combined
Defense spending by the United States accounted for nearly 40 percent of military expenditures by countries around the world.
Budget Basics: What Is the Earned Income Tax Credit?
The earned income tax credit (EITC) is a measure administered through the tax code to address poverty.