Statement on the President’s Budget from the Peterson Foundation
NEW YORK — Michael A. Peterson, President and COO of the Peter G. Peterson Foundation, commented today following the release of the President’s FY2015 Budget:
”While near-term deficits are lower, our long-term debt is still on an unsustainable path that damages our economy, today and in the future.
“Unfortunately, this budget does not address the fundamental drivers of our long-term debt, and it’s particularly disappointing that a credible structural reform from last year’s budget — chained CPI — has been removed. An election year should not be an excuse for either party to back away from the difficult, but necessary work of fiscal reform.
“Under this budget, our nation will spend a staggering $5.6 trillion on interest costs alone over the next 10 years, and interest will become the third largest federal ‘program’ by 2020. On our current path, we will soon spend more on interest than we do on all federal investment in R&D, education, and non-defense infrastructure, combined. America cannot become a nation that spends more on its past than on its future.
“Stabilizing the debt over the long term is a key part of any sound fiscal policy and viable economic strategy for America. We need to resolve our nation’s fiscal challenges in order to protect critically important health and retirement programs, invest in our own future, and ensure economic growth and opportunity for future generations.”
For the President’s Budget for Fiscal Year 2015, click here. For the Peterson Foundation’s analysis of the President’s Budget, click here.
Further Reading
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.
Understanding the New Senior Deduction in the One Big Beautiful Bill Act
The senior deduction adds complexity to the tax code, and fewer than half of seniors will benefit from it.
The Federal Government Has Borrowed Trillions. Who Owns All that Debt?
Most federal debt is owed to domestic holders, but foreign ownership is much higher now than it was about 50 years ago.