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With less than two weeks remaining until the August Congressional recess, Americans and the economy are vulnerable to a series of high-stakes fiscal deadlines, with an uncertain path forward.
If the president and Congress are unable to come to an agreement on the amount of the budget caps, they will risk either a harmful government shutdown or a potential automatic across-the-board cancellation of budgetary resources.
This year’s report demonstrates why lawmakers should focus their attention toward improving our nation’s debt path as soon as possible.
The primary deficit excludes interest payments, thereby measuring the gap between all other spending and total revenues collected.
The deficit is projected to reach $1 trillion this year, according to the Office of Management and Budget (OMB), which released its annual mid-session review on Friday.
“The administration projects that the deficit is on track to hit $1 trillion this year, even though we are in a strong economy and low interest rate environment," said Michael A. Peterson, CEO of the Peter G. Peterson Foundation.
The words debt and deficit come up frequently in debates and conversations about the policy decisions that lawmakers face. The two concepts are similar, but are often confused.
The United States leads the world in an unfortunate category: the pace of growth in its debt.
CBO projects that if current laws remain in place, federal debt will rise to 144 percent of gross domestic product (GDP) within 30 years – far exceeding its all-time high, and nearly doubling today’s level.
As lawmakers consider a range of costly new tax and spending proposals, voters across party lines are urging their leaders to prioritize the nation’s high and rising debt.
The non-partisan Congressional Budget Office (CBO) released its 2019 Long-Term Budget Outlook, highlighting the significant fiscal challenges facing our nation.
“As America’s leaders consider costly new spending proposals and tax cuts, today’s CBO report is a timely reality check," Michael A. Peterson, CEO of the Peter G. Peterson Foundation
There is one cap for national defense and another cap for non-defense programs.
Tax expenditures can come in the form of exclusions, exemptions, deductions, and credits.
Peterson Foundation’s ‘Solutions Initiative’ Produces Policy Options to Build Stronger Fiscal Future for America.
Oakland University’s innovative ‘Fiscally Fit’ campaign to engage students on the nation’s $22 trillion-and-growing debt stood out among more than 100 campus teams nationwide
10th annual Fiscal Summit includes Speaker Nancy Pelosi, White House Acting Chief of Staff Mick Mulvaney, House Budget Chairman John Yarmuth, Ways and Means Ranking Member Kevin Brady, New CBO Director Phillip Swagel and other leading policy voices from across the political spectrum
Americans want to live in a nation with widespread opportunity, a positive leadership role in the world, and a bright economic future for generations to come.
“Our nation faces a range of critical challenges, but Americans understand that managing the debt is a key part of building America’s future,” said Michael A. Peterson, CEO of the Peterson Foundation.
“Alice was a pioneering leader, a committed public servant and a dedicated advocate for fiscal responsibility and sensible solutions,” Michael A. Peterson, CEO of the Peter G. Peterson Foundation
CBO estimates that the national debt would climb from 78 percent of gross domestic product (GDP) in 2018 to 87 percent of GDP by 2029 under the president’s policies.
Federal trust funds bear little resemblance to their private-sector counterparts.
The amount spent by the federal government on interest is large and growing. Recent Congressional Budget Office (CBO) projections show that net interest will become the third largest “program” in the budget by 2025.
Under current law, the U.S. budget deficit will exceed $1 trillion each year beginning in 2022 and total $11.4 trillion over the upcoming decade according to projections by The Congressional Budget Office (CBO).
“Today’s CBO report demonstrates America’s dangerous and irresponsible fiscal path. Deficits will soon reach $1 trillion annually and grow from there, with no end in sight or plan for the future," Michael A. Peterson, CEO of the Peter G. Peterson Foundation
Overall healthcare costs — including all private and public spending — are anticipated to rise by an average of 5.5 percent per year over the next decade.
Every year the Social Security and Medicare Boards of Trustees issue reports on the fiscal health of these vital programs.
The report anticipates that in 2020 — for the first time since 1982 — the program’s total costs will exceed its total income.
Medicare faces significant financial challenges in future years because of rising healthcare spending and an aging population.
Medicare is an essential health insurance program serving millions of Americans, and a major part of the federal budget and our fiscal outlook.
Social Security is the largest single program in the federal budget and makes up approximately one quarter of total federal spending.
“The economy is growing, but so is the federal deficit, and that’s highly unusual.” said Michael A. Peterson, CEO of the Peterson Foundation.
Growth over the next few years is expected to slow as the recent fiscal stimulus wanes.
The Social Security and Medicare Trustees released their annual reports, which show that these vital programs are on an unsustainable path.
The latest trustees reports make clear that Social Security and Medicare beneficiaries face substantial cuts in the near future unless policymakers take action to make these vital programs solvent.
Debt held by the public would reach record levels relative to the size of the economy within the next two decades, and possibly as soon as 2032 — just 13 years from now.
Tax breaks totaled nearly $1.5 trillion in 2018. To put that in perspective, that’s more than the government spends on Social Security, Medicare, or defense.
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.
Some lawmakers favor substantial increases to marginal tax rates. Let’s look at how marginal tax rates and brackets work.
Although the debt-to-GDP ratio would decline under the president’s budget, the budget misses an opportunity to address the structural causes of our debt, and relies instead on overly optimistic economic assumptions and reductions in spending that are unlikely to come to pass.
Lower levels of debt allow governments to respond more effectively to a recession or financial crisis.
“The vast majority of Americans across party lines continue to urge national leaders to manage the debt,” said Michael A. Peterson, CEO of the Peterson Foundation.
Michael A. Peterson, CEO of the Peter G. Peterson Foundation, commented today following the release of the Monthly Treasury Statement, which showed a deficit of $234 billion.
Unique Research Project from Peterson Foundation and Ford Foundation Convenes Authors of 31 New Papers Exploring America’s Most Significant Long-Term Challenges
Leading experts, scholars will discuss 31 new research papers on trends that will shape America’s future economy and society.
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 U.S.
Although the budget would achieve some deficit reduction on paper under the administration’s calculations, it fails to address the key drivers of our long-term debt and relies on overly-optimistic assumptions for economic growth.
“Today’s proposal marks the beginning of the budget process, and it’s clear that there’s more work to do,” said Michael A. Peterson, CEO of the Peterson Foundation.
Increasing the debt limit 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.
If lawmakers do not agree on raising or suspending the debt limit before the extraordinary measures are exhausted, there would be severe consequences for both the federal government and the economy.
“The vast majority of Americans across party lines, including younger voters, are calling on the President and Congress to take action on our national debt,” said Michael A. Peterson, CEO of the Peterson Foundation.
At $22 trillion and rising, the national debt threatens America’s economic future. Here are the top ten reasons why the national debt matters.
The 50 U.S. states pull in over $2 trillion in revenue each year and, along with local governments, employ nearly 20 million people. A new report sheds light on budgets at the state level, grading performance and identifying best practices for improvement.
It may be counterintuitive, but government shutdowns are expensive. They are also bad for the economy.
“Reaching this unfortunate milestone so rapidly is the latest sign that our fiscal situation is not only unsustainable, but accelerating," Michael A. Peterson, CEO of the Peter G. Peterson Foundation, said.
Although the debt affects each of us, it may be difficult to put such a large number into perspective and fully understand its implications.
“No review of the state of our union is complete without acknowledging our nation’s high and rising debt," Michael A. Peterson, CEO of the Peter G. Peterson Foundation, said.
The federal budget is on an unsustainable and damaging fiscal trajectory, according to a new report from the non-partisan Congressional Budget Office.
A continuing resolution is a temporary funding measure that Congress can use to fund the federal government for a limited amount of time.
“Washington’s failure to address the national debt and critical budgetary issues has a direct negative effect on Americans’ confidence,” said Michael A. Peterson, CEO of the Peterson Foundation.
Despite a growing economy and low unemployment, federal budget deficits are projected to grow over the next 10 years.
“CBO has once again provided clear evidence that we must do something about America’s dangerous fiscal situation," Michael A. Peterson, CEO of the Peter G. Peterson Foundation, said.
“This shutdown has negatively affected the lives of millions of Americans, disrupted essential government services, and unnecessarily harmed the economy." Michael A. Peterson, CEO of the Peter G. Peterson Foundation, said.
Putting our nation on a sustainable fiscal path creates a positive environment for growth, opportunity, and prosperity. Unfortunately, America is on a dangerous long-term fiscal path.
Since the shutdown began, about 800,000 federal employees have been furloughed or are working without pay.
“This new rules package includes important reforms that can help encourage fiscal responsibility." Michael A. Peterson, CEO of the Peter G. Peterson Foundation, said.
Budget process rules like PAYGO help ensure that fiscal considerations are an important part of policymaking.
With a new Congress set to convene in the midst of a costly government shutdown, Americans hold deep concerns and a widespread belief that the country is moving in the wrong direction when it comes to the national debt.
The 116th Congress also marks a return to divided government with the Senate controlled by Republicans and the House by Democrats. This new landscape in Washington means there is both a requirement and a valuable opportunity for lawmakers to work together on fiscal solutions.