Nonpartisan Office: U.S. to Return to $1 Trillion-a-Year Deficits By 2020 Nonpartisan Office: U.S. to Return to $1 Trillion-a-Year Deficits By 2020 – NTK Network

Nonpartisan Office: U.S. to Return to $1 Trillion-a-Year Deficits By 2020

The Congressional Budget Office (CBO) painted an awful 10-year picture for America's debt, and budget deficits, in a report released Monday.

By NTK Staff | 04.10.2018 @11:00am
Nonpartisan Office: U.S. to Return to $1 Trillion-a-Year Deficits By 2020

According to a new report by the nonpartisan Congressional Budget Office (CBO), the U.S. will return to having annual $1 trillion deficits by 2020. CBO also found the national debt will grow to nearly $29 trillion by 2028.

The Wall Street Journal reported:

The Congressional Budget Office said the federal budget deficit would total $804 billion this year, 43% higher than it had projected last summer, and exceed $1 trillion a year starting in 2020. The deficit was $665 billion in the fiscal year ended Sept. 30.

Economic growth will jump above 3% this year thanks to fiscal stimulus, the CBO said, but the agency predicted the acceleration will prove largely fleeting. Larger deficits will add to the national debt: Debt held by the public will hit $28.7 trillion at the end of fiscal 2028, or 96.2% of gross domestic product, up from 78% of GDP in 2018.

The Committee for a Responsible Federal Budget (CRFB), a budget watchdog, noted that two recent moves in Congress exacerbated the budget picture: 1) the tax cuts, which reduced revenue projections for the decade by over $1 trillion, and 2) the $1.3-trillion spending bill passed this year.

The combination of fiscally irresponsible tax cuts and spending hikes, population aging, growing health costs, and rising interest rates will drive the national debt up to 96 percent of GDP under current law and 105 percent under the Alternative Fiscal Scenario. Under either scenario, debt would ultimately well exceed the prior record set just after World War II.

CRFB also noted that talks to permanently extend the individual tax cuts, and continued lack of spending discipline, will only make the debt and deficit pictures worse as time goes on.

Sign Up

for NTK updates every week.


View Privacy Policy