If we continue current policies, the federal debt will skyrocket to almost three times the existing record by 2050. That’s from 53 percent of the gross domestic product (GDP) at the end of fiscal year 2009 to more than 300 percent of GDP in 2050. The existing record was set when the debt reached 110 percent of GDP at the end of World War II.
BEYOND THE NUMBERS
Kudos to the Wall Street Journal’s Gerald Seib for noting in his Capital Journal column today that the country has a major fiscal problem that demands a serious, bipartisan, and balanced policy response. I agree and commend him for the piece.
In this context, here are a few more things to keep in mind on the tax side:
Those who seek a crisp primer on why experts worry about rising deficits and debt should look no further than this morning’s testimony before the President’s fiscal commission by Robert Reischauer, the former Congressional Budget Office director and a member of the Center’s Board of Directors.
With the President’s new fiscal commission having its first meeting this morning, here are three basic points concerning the coming debate over our nation’s budget priorities.
This Q & A is part three in a series on myths about health reform and its impact on the federal budget deficit with Jim Horney, our director of federal fiscal policy.
This podcast is part two in a series of podcasts on myths about health reform and its impact on the federal budget deficit. I’m Shannon Spillane and I’m joined by Jim Horney, Director of Federal Fiscal Policy at the Center.
Today’s Washington Post urges Congress to let the Bush tax cuts for people making over $250,000 expire. We agree. As our recent report on this issue noted, the high-income tax cuts are simply unaffordable given the huge projected deficits we face. Federal revenues would be $680 billion lower over the next ten years than if Congress lets them largely expire, as the President has proposed.
Today, we sat down with Jim Horney, Director of Federal Fiscal Policy at the Center, to discuss myths about health reform and its impact on the federal budget deficit.
Jim, let’s start off at the broadest level. Some opponents of the new health reform law claim that it will increase the federal deficit. Are they correct?
No, they are not correct. The nonpartisan, highly-regarded Congressional Budget Office, or CBO, estimates that the health reform law will reduce deficits by $143 billion over the next 10 years.