U.S. debt set to be twice economy if Congress extends current policies
Federal debt would grow to double the size of the economy in 30 years if Congress extends tax cuts and continues the recently enacted spending increases, budget analysts said Wednesday.
Looking at Congressional Budget Office scenarios, analysts at the Committee for a Responsible Federal Budget said the U.S.’s long-term fiscal outlook would become “much more bleak” if deficit-financed tax cuts and spending increases enacted in the last year continue.
Put another way, debt would go to 210% of GDP by 2048, noted Tyler Evilsizer of the CRFB in a tweet.
New CBO report: if lawmakers extend tax cuts and spending increases, debt goes up to 210% of GDP by 2048. Twice the size of the economy!https://t.co/RbuGgJ5ZRC
— Tyler Evilsizer (@TylerEvilsizer) August 8, 2018
If the tax and spending policies are extended, the deficit in 2038 would be 10.5% of GDP, instead of the 7.1% under current law, the CRFB said in a blog post. That deficit would be the highest in recent history outside of the deficits that financed World War II, the organization noted.