The Congressional Budget Office reports that the U.S. government's fiscal health is dire, with debt and deficits projected to reach record levels by 2035. The report highlights the challenges facing President-elect Trump and congressional Republicans as they seek to implement ambitious tax cuts and spending increases.
Updated: 2 hours agoThe Capitol Dome is seen as military members practice for a parade during a presidential inauguration rehearsal on Capitol Hill on Sunday in Washington, D.C. MUST CREDIT: Jabin Botsford/The Washington Post
The report casts new light on the financial conditions facing Trump and congressional Republicans with unified control of Washington. The GOP has grand plans to green-light a nearly $5 trillion tax cut along party lines, plus hundreds of billions of dollars more in border security and national defense spending.
Most of the growth in debt comes from new spending on social safety-net programs related to demographic changes: As baby boomers retire en masse, they’re placing increasing strain on Social Security and Medicare, which are set to go insolvent within the next decade. “Today’s report shows a daunting outlook, but the good news is that there are many policy solutions available to address our fiscal challenges. As we approach Inauguration Day, our leaders have a new opportunity to secure America’s economic future by putting us on a stronger, more sustainable fiscal trajectory,” said Michael A. Peterson, chief executive of the Peter G. Peterson Foundation, a fiscal policy think tank.
The yield on a 30-year Treasury bond traded at close to 5 percent interest on Friday, the highest mark since 2007, before the economy began to feel jitters ahead of the Great Recession.
ECONOMY DEBT DEFICIT BUDGET TAXCUTS
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