Global Statistics

All countries
177,813,953
Confirmed
Updated on June 17, 2021 4:24 am
All countries
160,596,775
Recovered
Updated on June 17, 2021 4:24 am
All countries
3,848,876
Deaths
Updated on June 17, 2021 4:24 am

Global Statistics

All countries
177,813,953
Confirmed
Updated on June 17, 2021 4:24 am
All countries
160,596,775
Recovered
Updated on June 17, 2021 4:24 am
All countries
3,848,876
Deaths
Updated on June 17, 2021 4:24 am

Congressional Budget Office: Federal debt nears ‘unsustainable’ levels

Grand Jury Deliberations in Breonna Taylor Case Will Be Released

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Video shows alleged ballot harvesting in Ilhan Omar’s district

Fox News Back to Top ©2020 FOX News Network, LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. All market data delayed 20 minutes. New Privacy Policy - New Terms of Use (What's New) - FAQ

A Once-in-a-Century Climate ‘Anomaly’ Might Have Made World War I Even Deadlier

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Sean Hannity claims Dems ‘put all their eggs in the debate basket’ ahead of first Biden-Trump showdown

Joe Biden's campaign has "put all their eggs in the debate basket" after the Democratic nominee kept a low profile for much of the summer, Sean Hannity claimed Monday.“I believe his campaign team – they are seeing what we all see,” said the “Hannity” host, who noted that the former vice president's campaign wrapped up its public events…

Tucker: Amy Coney Barrett ‘represents everything that made this a great country,’ so Dems ‘despise her’

Supreme Court nominee Judge Amy Coney Barrett is causing an uproar among Democrats and according to Tucker Carlson, her happy family is what’s driving them crazy.“Democrats know Amy Coney Barrett’s life refutes the lies they have pushed on the rest of us for decades, [so] they must destroy her personally,” the “Tucker Carlson Tonight” host said…

Federal debt is nearing “unsustainable” levels, but low interest rates have created a window of opportunity for policy-makers to rein it in, the Congressional Budget Office said Monday, delivering a mixed outlook for the government’s long-term outlook.

Federal spending, currently 21% of gross domestic product, will rise to 31% by 2050, with most of that increase coming from interest payments on the rising debt, said Phillip J. Swagel, CBO’s director. Federal revenue, meanwhile, stood at just 16% of GDP last year, and will only reach 19% by 2050.

The gap between those spending and revenue numbers illustrates the problem.

“The fiscal path over the coming decades is unsustainable,” Mr. Swagel said in a stark statement describing CBO’s findings.

Federal debt held by the public will reach 98% of gross domestic product this year and will cross the 100% threshold next year.

It will reach a record 107% in 2023, and by 2050 — the end of CBO’s budget window — it will be a staggering 195% of GDP.

The coronavirus pandemic is a major cause of that, piling up debt this year and next, CBO said. But the problems run much deeper than virus spending.

Four of the government’s trust funds will be exhausted by 2031, including both Social Security funds, Medicare’s hospital insurance fund and the Highway Trust Fund.

Even treading water, much less making headway on the debt, will require significant sacrifices.

Mr. Swagel said it will mean sustained tax increases, spending cuts or a combination of the two, of nearly 3% of GDP a year.

If that began in 2025, it would add $2,200 that year to the average American’s tax bill or cost that much in lower federal spending.

Waiting longer to begin means even deeper spending cuts or tax hikes would be needed.

It’s not likely the economy can grow quickly enough to erase the need for spending cuts or tax increases, Mr. Swagel said.

Some economists have argued that the 100% debt mark is a clear danger sign for major world economies. CBO didn’t subscribe to that, but said there is some line out there.

“There is no set tipping point at which a fiscal crisis becomes likely or imminent, nor is there an identifiable point at which interest costs as a percentage of GDP become unsustainable. But as the debt grows, the risks become greater,” Mr. Swagel said.

Among the dangers are the more the government owes to foreign creditors, the less income the U.S. has. And the worse the budget picture, the less room the government has to maneuver in future fiscal crises, CBO said.

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