Cheerful Charlie
Contributor
https://www.yahoo.com/finance/news/era-permanent-1-trillion-deficits-210922705.html
The Republican tax plan and increased government spending will provide a temporary boost to the economy but sharply increase the federal deficit, sending it above $1 trillion a year in 2020, two years earlier than previously projected, according to estimates released Monday by the Congressional Budget Office.
Unless Congress acts to stem the tide of red ink, the deficit would climb to $1.5 trillion by 2028 — and it could reach $2 trillion by that year if lawmakers extend a number of temporary policies.
The CBO report was delayed from its usual January release to allow analysts time to forecast the effects of the GOP tax cuts enacted late last year and the spending bill passed last month. CBO projects that the new laws will increase deficits by $2.7 trillion — $1.7 trillion in lower revenue as a result of the tax cuts and $1 trillion in higher spending. Those effects will be partially offset by $1.1 trillion in increased tax receipts resulting from faster economic growth, meaning that the new laws will add a net $1.6 trillion to deficits over the next decade, CBO says.
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It just keeps getting worse and worse.
https://www.cbo.gov/publication/53651
The Budget and Economic Outlook: 2018 to 2028
April 9, 2018
Report
In CBO’s projections, the economy grows relatively quickly this year and next and then more slowly in the following several years. The federal budget deficit rises substantially, boosting federal debt to nearly 100 percent of GDP by 2028.
The Republican tax plan and increased government spending will provide a temporary boost to the economy but sharply increase the federal deficit, sending it above $1 trillion a year in 2020, two years earlier than previously projected, according to estimates released Monday by the Congressional Budget Office.
Unless Congress acts to stem the tide of red ink, the deficit would climb to $1.5 trillion by 2028 — and it could reach $2 trillion by that year if lawmakers extend a number of temporary policies.
The CBO report was delayed from its usual January release to allow analysts time to forecast the effects of the GOP tax cuts enacted late last year and the spending bill passed last month. CBO projects that the new laws will increase deficits by $2.7 trillion — $1.7 trillion in lower revenue as a result of the tax cuts and $1 trillion in higher spending. Those effects will be partially offset by $1.1 trillion in increased tax receipts resulting from faster economic growth, meaning that the new laws will add a net $1.6 trillion to deficits over the next decade, CBO says.
-----
It just keeps getting worse and worse.
https://www.cbo.gov/publication/53651
The Budget and Economic Outlook: 2018 to 2028
April 9, 2018
Report
In CBO’s projections, the economy grows relatively quickly this year and next and then more slowly in the following several years. The federal budget deficit rises substantially, boosting federal debt to nearly 100 percent of GDP by 2028.
