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
IRS Staffing Cuts Will Reduce Revenues, Driving Deficits Higher
Reductions in IRS personnel decrease federal revenues, increase deficits, and significantly exacerbate the gap between taxes that are owed and taxes that are actually paid.
What Is a Value-Added Tax and Should the United States Have One?
Almost all developed economies have a value-added or similar consumption tax — but the United States does not.
Social Security Will Be Depleted in 6 Years — Here Are 3 Ideas to Fix It
Here are three options Congress could enact to close the funding gap.