"Federal debt is projected to be on a steadily rising trajectory throughout the decade". That's more than the $US665 billion shortfall at the end of fiscal 2017 and $US242 billion more than the CBO projected last (northern) summer. "This is the first forecast to take into account the recent tax and spending legislation, and it's clear that lawmakers have added significantly more debt on top of an already unsustainable trajectory", said Michael Peterson, President and CEO of the Peterson Foundation, a nonpartisan group that focuses on America's fiscal challenges. But the current deficit increases come amid steady economic growth and low unemployment, a time when many economists recommend paying down the deficit.
Donald Trump's new economic adviser, Larry Kudlow is a fervent believer in this rubbish. Market Watch notes that the USA hasn't run deficits exceeding a trillion dollars since 2012. But there was a reason for that - from 2009 to 2012, deficits were above $US1 trillion as the government grappled with recession, the fallout of the GFC and a stuttering recovery. But in their quest to pass significant legislation ahead of re-election campaigns later this year, congressional Republicans, with the support of President Donald Trump, adopted the US$ 1.5 trillion tax cut measure that has put more money in the paychecks of a large majority of American workers.
The Congressional Budget Office (CBO) released its budget outlook for the coming decade on Monday, raising its estimates for GDP growth in 2018 and 2019 to 3.3% and 2.4%, respectively.
Instead the non-partisan CBO said the cumulative debt would be the same size as the overall Gross Domestic Product in 10 years' time.
Several teens injured in Long Island bus crash
The height of the Prevost is about 12 feet, according to the bus manufacturer, Newsday reported. Kennedy International Airport after a spring break trip to eastern Europe, police said.
"Such high and rising debt would have serious negative consequences for the budget and the nation", said Hall. The deficit settled below $500 million for part of Obama's second term but has steadily risen since then. CBO now estimates the 2018 deficit will be $242 billion higher than it had estimated last June, before the tax cuts. CBO is required to calculate the effects of the laws as written. That means the CBO has to assume the unlikely event of deep cuts to discretionary spending. It includes defense, infrastructure, medical research, and many other things - most of what government does other than writing checks to retirees and the poor.
Democrats seized on the report to criticise Republicans, who have previously championed fiscal responsibility.
"Productivity growth returns to almost its average over the past 25 years and recent changes in fiscal policy boost incentives to work, save, and invest; nonetheless, economic growth is held down by slower growth of the labor force", the CBO said.
But note this is based on "current law", and assumes substantial income tax increases in 2025 as individual tax cuts expire, and that there will be spending cuts too.