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Your guide to what US elections in 2024 mean for Washington and the world
The US federal debt load is ready to overcome the peak that it achieved as a result of the Second World War in the coming years, warning the fiscal guard dog of the congress and emphasizing the growing concerns of US public finances.
The Congress Budget Office said on Thursday that the ratio of the US debt to GDP during the fiscal year 2029 will reach 107 %-the peak of ERA 40.
Projections come only a few days after Moody's delivered A warning about the sustainability of the US fiscal position, while a rating agency claims that President Donald Trump's business tariffs could endanger the attempts to increase interest rates under control.
“The assembly debt would slow economic growth, increase interest payments to foreign debt holders, and posed significant risks for fiscal and economic outlook; it could also cause legislators to feel limited in their political elections,” CBO said on Thursday.
Despite the extent of the increase in debt load, it is assumed that the expansion rate will now be less drastic than expected a year ago due to CBO assumptions of lower interest rates, less medical expenses and higher income.
Trump's administration committed to find a fiscal height that would meet its commitment to campaign tax cuts for businesses and households.
Trump was entrusted with technical billionaire Elon Musk to find $ 2 in federal expenditure until the middle of next year, as the president is trying to restore cuts in 2017 during his first administration.
The President also increased the possibility of reducing the income tax on household activities from 21 percent to 15 %.
CBO calculations do not take into account the impact of Trump's tax cuts, which become permanent-steering that fiscal watchdog said it would add 47 percentage points to the ratio of US debt to GDP by 2054 last week.
Trump's administration believes that the revenue of sweeping Tariffs The gap could involve lower income income and legal persons.
However, economists from the Peterson Institute, Washington Think-Tank, questioned the claim that trade fees would be enough to compensate for potential trillion dollars in income tax income.
The US federal government has operated significant budget deficits every year from Pandemia, with 6.4 % of GDP revenues last year. CBO said the deficits were likely to remain high and increased to 7.3 % by 2055 – slightly lower than expected in March 2024.
Calculations assume that long -term US growth will be slightly lower than expected a year ago. CBO believes that lower growth is largely, except for less immigration, while the American population began to shrink in 2033.
