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The Peter G. Peterson Foundation is a nonpartisan, nonprofit organization focused on building a brighter economic future for all Americans. Browse news from the Foundation, and read about our upcoming events.
“Unfortunately, this bill does little to address our long-term fiscal challenges," said Michael A. Peterson.
Medicaid’s role in state budgets is unique, since the program acts as both an expenditure and the largest source of federal support in state budgets.
The treatment of carried interest continues to be one of the most controversial elements of the U.S. tax code.
Interest costs are on track to become the largest category of spending in the federal budget.
Federal spending for international affairs, which supports American diplomacy and development aid, is a small portion of the U.S. budget.
As part of a potential deal to raise the debt ceiling, policymakers are considering rescinding remaining funding for COVID-19 relief.
“As the national debt grows continually while the ceiling deadline inches closer, voters have an unprecedented level of concern about our fiscal outlook,” said Michael A. Peterson.
SNAP is the largest federal program aimed at combating hunger and food insecurity among low-income Americans.
National security is both a vital priority and a significant part of the federal budget.
The Federal Reserve plays an important role in stabilizing the country’s economy.
The Congressional Budget Office (CBO) released updated budget and economic projections, which incorporate the effects of higher interest rates, annual appropriations, and other recent legislative and economic developments.
Programs that millions of Americans depend on and care about may be feeling a squeeze from interest costs on our high and rising national debt.
At $31 trillion and rising, the national debt threatens America’s economic future. Here are the top ten reasons why the national debt matters.
The recent volatility in interest rates show that breaching the debt ceiling could make federal borrowing much more expensive.
“Today’s CBO report is a timely reminder that as lawmakers work to raise the debt ceiling, they should also address the underlying problem of our rapidly growing national debt."
Let’s look at the trends in discretionary spending, and how effective they are in reducing the debt.
At the end of 2022, the nation’s gross debt had reached $31.4 trillion dollars.
Higher short- and long-term Treasury rates mean that the federal government's borrowing costs will also rise.
Most working Americans are subject to payroll taxes, which are usually deducted automatically from an employee’s paycheck. Employers are also often subject to these types of taxes.
The United States spent $766 billion on national defense during fiscal year (FY) 2022 according to the Office of Management and Budget, which amounted to 12 percent of federal spending.
The depletion dates for Social Security’s Old-Age and Survivors Insurance (OASI) Trust Fund and Medicare’s Hospital Insurance (HI) Trust Fund have been relatively well known for the past 20 years and are now rapidly approaching.
“Democratic and Republican voters know that this level of fiscal irresponsibility carries a huge economic risk,” said Michael A. Peterson.
Here’s an overview of inflation, why it matters, and how it’s managed.
The fiscal path of the U.S. government is currently unsustainable because the ratio of debt held by the public as a percent of GDP is rising.
Federal trust funds bear little resemblance to their private-sector counterparts.
Defense spending by the United States accounted for nearly 40 percent of military expenditures by countries around the world in 2022.
“It’s a positive step to see proposals which raise the debt ceiling while also beginning to address our unsustainable fiscal outlook," said Michael A. Peterson.
Social Security is the largest single program in the federal budget and makes up approximately one quarter of total federal spending.
Medicare is an essential health insurance program serving millions of Americans, and a major part of the federal budget and our fiscal outlook.
Projects to address testing, schooling mode impacts, misinformation and vaccine passports will receive $226,536 in research support from Peterson Foundation fund.
Tax expenditures can come in the form of exclusions, exemptions, deductions, and credits.
The percentage of income that Americans pay in taxes can vary widely and depend on many factors.
This piece examines spending on veterans within the budget and outlines the factors that have pushed it higher in recent years.
Compared to historical trends and other advanced economies, corporate tax revenues in the United States are low.
The administration and Congress have suggested adding new sources of revenue through various types of taxation of wealth.
Healthcare spending in the United States totaled 18.3 percent of gross domestic product (GDP) in 2021.
Presently, revenues raised by the corporate income tax represent the third-largest category of federal tax revenue in the United States, trailing those generated from the individual income and payroll taxes.
The United States has one of the most expensive health systems in the world.
Without reform, Medicare spending will continue to rise over the coming years — threatening the HI Trust Fund and placing immense pressure on the overall federal budget.
“These new Trustee reports make clear that when it comes to the future of Social Security and Medicare, doing nothing is simply not an option," said Michael A. Peterson.
Today, the Social Security and Medicare Trustees released their annual reports on the programs’ financing, showing that the future of these vital programs remain at risk.
Without reform, the Social Security Trust Funds will soon be depleted and unable to pay full benefits.
“Voters understand that making progress on our national debt would help their economic prospects,” said Michael A. Peterson, CEO of the Peterson Foundation.
One issue that most lawmakers and voters agree on is that our tax system needs reform.
Healthcare costs are notoriously high in the United States, and the price of prescription drugs is a big reason why.
The Medicare Advantage allows beneficiaries enrolled in both Part A and Part B to receive benefits from private plans.
The primary deficit focuses on the difference between government revenues and spending, excluding interest payments. Learn more about the U.S. primary deficit.
Here are the top ten spending categories for the federal budget.
The fairness of our federal tax system is a hotly debated issue. Too often, however, those debates confuse or misrepresent important facts because they focus on one type of tax in isolation rather than the various taxes that people face in aggregate.
Here we examine that increase in funding in greater detail by analyzing the extent to which more funding impacts tax compliance, the tax gap, and federal revenues.
“It’s critical that budget proposals fully address the structural drivers of our debt in order to stabilize it over the long run," said Michael A. Peterson, CEO of the Peter G. Peterson Foundation.
Today, the Biden Administration released its budget for fiscal year 2024, calling for a reduction in federal deficits by $2.9 trillion over the next decade relative to current law.
Tax breaks totaled over $1.7 trillion in 2022. To put that in perspective, that’s more than the government spends on Social Security, defense, or Medicare.
Responsible fiscal policy can play an important complementary role to monetary policy in helping to moderate inflation.
Earlier this year, the United States once again hit its debt ceiling, which is currently capped at $31.4 trillion.
There are three widely used measures of federal debt. What are the important differences between these measurements?
“CBO’s latest report shows just how vulnerable we are to rising interest rates, and voters are paying attention,” said Michael A. Peterson, CEO of the Peterson Foundation.
Although the need for serious, long-term changes to the funding structure of the Highway Trust Fund is clear, there is disagreement over the approach to do so.
According to the official poverty measure of the U.S. Census Bureau, 37.9 million people lived in poverty in 2021.
The words debt and deficit come up frequently in debates about the policy decisions that lawmakers face. The two concepts are similar, but are often confused.
Healthcare spending is a critically important part of the American economy and the federal budget.
Borrowing costs have increased rapidly over the past year and will grow through the next decade.
“Interest costs are skyrocketing to record levels, damaging our nation’s budget, economy and future," said Michael A. Peterson, CEO of the Peter G. Peterson Foundation.
CUTGO is short for “cut-as-you-go,” and it is an internal rule used by the House of Representatives, meaning that it does not apply to consideration of legislation in the Senate.
With the national debt surpassing $31 trillion, the next generation of American leaders is making its voice heard.
Improving our healthcare system to deliver better quality care at lower cost is critically important to our nation’s long-term economic and fiscal well-being.
Interest costs on the national debt are expected to rapidly outstrip spending on children in coming years.
Cracking down on the tax gap would not only introduce more fairness into the system, but it could be a big help for our nation’s fiscal imbalance — to the tune of hundreds of billions of dollars every year.
There have been a number of proposals to increase, eliminate, or otherwise adjust the payroll tax cap as a way to shore up Social Security’s finances.
“With interest on the debt rising to more than $1 billion a day, voters know our fiscal condition is simply not sustainable,” said Michael A. Peterson, CEO of the Peterson Foundation.
There’s no doubt America’s fiscal problems are serious and significant, but CBO’s assortment of options offers lawmakers a deep playbook of spending and revenue changes that would put us on a better path.
Eight new essays bring practical advice for congress and the administration to address America’s most pressing fiscal and economic challenges.
High healthcare spending is not necessarily a bad thing, especially if it leads to better health outcomes. However, that is not the case in the United States.
Even if Congress raises the debt ceiling and avoids default, last-minute brinksmanship alone has the potential to create economic damage.
If lawmakers do not agree on raising or suspending the debt limit before the extraordinary measures are exhausted, there would be severe consequences.
As the U.S. reaches its debt ceiling, the Department of the Treasury is now using “extraordinary measures” to keep the federal government from defaulting on its debts.
Increasing the debt ceiling allows the Treasury to borrow funds to pay for government obligations that have already been incurred as the result of laws and budgets approved by the President and Congress.
As the largest program in the federal budget, Social Security is a critical part of our nation’s fiscal picture and vital to millions of elderly recipients.
“Across party lines, vast majorities of voters believe that divided government brings an important responsibility for our leaders to work together to secure our fiscal future,” said Michael A. Peterson, CEO of the Peterson Foundation.
A continuing resolution is a temporary funding measure that Congress can use to fund the federal government for a limited amount of time.
