CBO: GOP policies add almost $1.6 trillion to deficit

12 April, 2018, 00:43 | Author: Edward Snyder
  • CBO: GOP policies add almost $1.6 trillion to deficit

The country's cumulative deficit will balloon to $11.7 trillion from 2018 to 2027, $1.6 trillion higher than previous estimates.

CBO stated that, "Such high and rising debt would have serious negative consequences for the budget and the nation".

The report comes as a hit to Republicans campaigning on tax cuts in the 2018 midterm elections, and a boon to Democrats looking to point out the hypocrisy of Republicans who once complained about President Barack Obama's spending and claimed to be deficit hawks.

Between the lines: Republicans have spent almost a decade campaigning on fiscal restraint.

Democrats accused Republicans of agitating for just that outcome, saying the tax cuts were created to starve the government of money to pave the way for those cuts.

"It's going nowhere", said Sen. "In their craven haste to give corporations and the wealthiest 1% massive tax breaks, Republicans saddled our children and grandchildren with trillions of dollars of debt".

The CBO also said the deficit would continue to climb over that decade. Debt held by the public, which has doubled in the past 10 years as a percentage of gross domestic product (GDP), approaches 100 percent of GDP by 2028 in CBO's projections.

Perhaps even more striking is the employment picture, where the economy is going gangbusters.




The CBO estimated that potential economic growth will be elevated over the next two years but long term will average 1.9 percent a year.

"To address our federal debt, we must slow the growth of entitlement spending, increase revenues with a growing economy, and make responsible spending cuts", Lankford said in a statement. Yields move in the opposite direction from bond prices, rising when the prices of bonds paying fixed interest rates fall. By 2020 - just as Mr. Trump is facing voters for re-election - GDP growth will have slipped back below 2 percent.

The national debt, which has topped $21 trillion, is expected to soar to more than $33 trillion in 2028. Lawmakers in recent years have been loathe to let tax cuts expire.

The Trump administration had promised the cuts would pay for themselves. In a decade, the red ink is expected to reach $1.5 trillion.

In late March, President Trump signed a $1.3 trillion spending plan to fund the government through September.

The government would borrow about 19 cents of every dollar it spends this year. By 2020, when Mr. Trump is up for re-election, that will be 22 cents.

Analysts say the debt problems could get worse. All it will take are sizable tax increases.

House Republicans are also expected to vote this week on a balanced-budget amendment to the Constitution, which would force federal revenue and spending to balance.

Recommended:



Popular

J&K encounter: Army jawan killed, 4 civilians die in ensuing clashes
Mobile internet services were also suspended in Kulgam and Anantnag districts of South Kashmir following the encounter. They said a gun battle broke out between the militants and security forces in the early hours.

Ithaca Police Releases Sketch of Collegetown Sexual Assault Suspect
Police said a local teen reported that William Gordon, 38, had assaulted her in his vehicle after giving her a ride home. Police Chief Scott Reinbolt said a Clinton County Sheriff's deputy responded to assist, and BPD Ptl.

Digital Day 2018 Highlights EU Blockchain Partnership Initiative
The event highlighted how blockchain will work with other next-generation technologies to create a more digitally friendly and capable Europe .

Confounding Stock: Exxon Mobil Corporation (NYSE:XOM)
Societe Generale reissued a "buy" rating and set a $87.00 price target on shares of ExxonMobil in a report on Tuesday, March 13th. Total volume is the number of shares or deals that point towards the overall activity of a security or market for a given period.

Architects of Good Friday Agreement mark 20th anniversary
He also urged the people of Northern Ireland to "inspire" again and ensure that the next generation is also free to enjoy peace. Mr Clinton and Mr Mitchell will later receive freedom of Belfast awards at a special ceremony at the Ulster Hall.

After Congress, Modi-led BJP to fast over parliament washout
On Friday, Modi had accused Congress of resorting to divisive politics and announced BJP's hunger strike as a protest. Party sources said Modi will stick to his schedule and work from his residence at 7, Lok Kalyan Marg despite the fast.

Transgender weightlifter Hubbard says injury career-ending
The athlete, who is the top-ranked female weightlifter in the world, became the first trans sportsperson to represent her country. Not one of the additional lifters, including Australia's Deb Loveley-Acason, acquired everywhere near Hubbard'therefore indicate.

More National Guard Troops Heading to Texas-Mexico Border
In California, Brown's spokesman, Evan Westrup, said Monday that state officials are still reviewing Trump's troop request. Rios said the added troops are unnecessary and that arrests at the U.S. -Mexico border are at an all-time low.

Royal Baby: Palace Reveals New Details Of Birth Arrangements
However, it's now kicked up a gear as the road outside the Lindo Wing, where Kate will give birth, has been closed to the public. Prior to Andrews' report, Kensington Palace had only shared that Middleton was expected to give birth during the month of April.

Apple's global facilities now 100% powered by clean energy
While impressive that facilities in 43 countries are powered with clean energy, its many suppliers are still working at it. San Francisco: Apple said Monday it had achieved a goal of "100 percent clean energy" for its facilities around the world .