Statement on CBO’s Budget and Economic Outlook
Statement on CBO’s Budget and Economic Outlook
NEW YORK — Michael A. Peterson, President and CEO of the Peter G. Peterson Foundation, commented today on the Congressional Budget Office’s Budget and Economic Outlook update:
“As a new president and Congress take office, one thing hasn’t changed: our nation’s fiscal outlook remains unsustainable. Now is the time to tackle this long-standing issue.
“In today’s report, CBO projects that deficits will reach $1 trillion by 2023 and total $9.4 trillion over the next ten years. As our debt grows, so too do our borrowing costs — crowding out important investments in our economic future. Interest alone is projected to total $5.2 trillion in the next ten years, according to CBO’s latest projection.
“The long-term imbalance between revenues and spending must be taken into account as lawmakers look to address major policy areas, including healthcare and tax reform. These reforms should improve our fiscal outlook in the decades ahead, by stabilizing our debt as a share of the economy.”
For more information, read our analysis of the CBO report.
Further Reading
What Is Stepped-Up Basis on Capital Gains and How Does It Affect the Federal Budget?
The step-up in basis is a provision in tax law that relates to how assets — such as stocks, bonds, or real estate — are valued and taxed after their owner passes away.
The Demographics of Income and Wealth in the United States
Income levels for Americans vary across geography, race, and gender.
What Is R Versus G and Why Does It Matter for the National Debt?
The combination of higher debt levels and elevated interest rates have increased the cost of federal borrowing, prompting economists to consider the sustainability of our fiscal trajectory.