US deficit is projected to roughly double this year: watchdog
S E E D E D C O N T E N T
The U.S. deficit is projected to roughly double this year, largely due to higher interest rates and lower tax revenue.
The Committee for a Responsible Federal Budget, an organization that pushes for lowering the deficit, is projecting the federal deficit will double this year to total about $2 trillion for the fiscal year that ends Sept. 30. Marc Goldwein, senior policy director at the organization, told The Hill that high interest rates, lower tax revenues and high inflation resulting in higher Social Security and Medicare costs have all contributed to the rising deficit.
“A big part of the story is just that there was sort of a one-time huge revenue surge in 2022 that’s done,” Goldwein said. “But the other stories are that we have structurally deficits really rising in 2023. And that’s a lot of that is because of interest costs.”
“These things add up,” he added. “It’s no one thing that’s causing us to go from $1 trillion to $2 trillion. It’s like six things.”
The Congressional Budget Office estimated last month that the federal budget deficit reached $1.6 trillion in the 10-month period ending in July.
Goldwein also noted the official 2022 deficit numbers are about $4 billion higher than they should be due to the student loan cancellation because the Biden administration recorded it on last year’s numbers even before the cancellation went into place. Therefore, their prediction is based on numbers that ignore the effects of the student debt cancellation that was later struck down by the Supreme Court.
This comes years after the U.S. hit record-shattering deficit levels in 2020 and 2021 that were largely due to the pandemic-era spending and borrowing. In 2020, the deficit hit $3.1 trillion and in 2021, it hit $2.8 trillion.
“We’re predicting this, but this is really based very heavily on things that the Congressional Budget Office has already set,” Goldwein noted.
He also said he expects the deficit to go down in 2024 compared to this year. He said that over the next decade, the deficit will likely creep up to $3 trillion if there are no other “predictable shocks.”
“I do expect deficits are trending upward over time,” he said. “But I do think they’re more likely to fall than to rise in 2024.”
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The hits keep coming...
Do you find our economic conditions the same as in the 80"s?
so you believe dick cheney is infallible.
Okay.
Pretty obvious deflection attempt.
Are you saying that Cheney and Reagan lied about deficits?
Reagan never said that, I know the left loves a Cheney now, maybe you are confused about which one? or maybe you think Dick Cheney is the pinnacle of honesty? Or is this just another example of hypocrisy in posting?
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Deficits never matter to republiCONS/CONServatives unless a Democrat is President.
Exactly.
Do they matter to you?
Slowly, almost grudgingly the facts are revealed.
let's try the simple republican solution, again. more tax cuts for the wealthy and business, and more federal subsidies and tax credits for multinational corporations that don't need them.
Imagine a Democrat railing against this.....
Leave it to republican's to vote against a solution, then cry that it's someone else's fault.
Thanks for showing another glaring example of a Democrat backed failure.
Why would you imagine that law to be a "solution", and for what?
Because it stimulated the economy with needed long term infrastructure spending just in time to avoid the all but inevitable recession, providing job growth while simultaneously dampering inflation giving the United States economy a head start rebounding after Covid-19 and the supply chain disruptions caused by it and by Putin's War in the Ukraine. That is why. Of course you and Trump's MAGA see only gloom and doom, because your Trumpy lost!
So you see that the conditions are set to reduce the 2024 deficit?
And "stimulating the economy" reduces inflation?
Really? So what was the "Infrastructure Investment and Jobs Act"? You mean spending $2.3 trillion didn't work?
Or are you just spouting nonsense to defend whatever Democrats do again, complete with moronic assertions and infantile memes, as is your usual practice?
If it was a solution, why are deficits doubling? You know it passed, right?
Oh.. The bill will add $750 billion to the nation’s deficit over ten years, according to Smetters.
Typical of the republiCONS/CONServatives/today's gqp.
Maybe if Jackass Joe would quit sending money to other countries there wouldn't be the financial problems in D.C. But then again, those in D.C. aren't known for knowing how a budget works.
It is finally time to tax wealth and churches!
"So, Mr Dillinger, why do you rob the banks?" "Because that is where all the money is"...
And you imagine it's in "churches"......
Riiiiiiight.
Numbers are hard for some.
Lets not stop at churches, lets go after the Gates foundation, they have Bank, And the climate reality project, so many we can tax.
Did you mean, it is finally time to increase the tax on wealth and start taxing all nonprofits?
I think you've confused him with Willy Sutton.
And Joe Biden will continue to say that he created all those jobs that simply came back after the pandemic. The only thing he created was inflation, crime and division.
Last see he was telling us that he was homeless.
Yet again, just like clockwork, it's the old 'we only care about debt under Democratic presidents' thing.
A full quarter of the current national debt accrued under Trump with nary a peep from the right, who actually cheered for that big, idiotic tax cut when the economy was already growing! One of the most fiscally irresponsible acts I can remember.
Do you care about our national debt regardless of who is president?
It's not an obsession for me, but sure. I'm not happy about how much it went up under Obama, for instance, but I try not to to forget the reasons for increases at any given time.
I am less concerned with increases due to things aimed at reducing genuine human suffering, like disaster relief, the ACA, and especially SSI and Medicare for older Americans.
I tend to be much more concerned with increases due to blatant fiscal incompetence, like tax cuts primarily benefitting the wealthy during an already booming economy.
Apparently, it’s not an obsession with anyone.
What has your Party proposed to do about that?
Apparently, but that doesn't affect the hypocritical propaganda about it every election cycle with a Dem incumbent.
I don't have a party.
Neither do I, but I think that we are leaving our children and grandchildren an enormous debt.