Long-Term Federal Budget Update

Long-Term Federal Budget Update

The Congressional Budget Office projections for federal deficits are far understated, as a result of their operating under the assumption that what is current law will continue on to be such, up until the time of the projections.

“Under current law, real discretionary spending will decline over the 2020-2029 period, because of the sequester provisions. It is likely that Congress will find away around the sequester rules again”.

“Current law calls for expiration of the personal tax cuts in 2025”. However, their extension could to be a likely scenario, seeing as how there does not seem to be much opposition to the idea.

More realistically, the Federal Budget deficit “will exceed $2 trillion by 2028”.

More likely still, we will see “$4 trillion added to the cumulative baseline deficit projection by 2029 and as much as $52 trillion by 2049”.

Read more here!

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