When Congress goes to pass funding for Fiscal Year 2019, lawmakers will discover that the sum of tax cuts and spending increases will virtually assure that federal deficits will reach $1 trillion in FY19. Americans can’t afford—literally and figuratively—to ignore the looming return of $1 trillion annual federal deficits and the waterfall of impacts they will create.
The Congressional Budget Office (CBO) projected in its June budget baseline that in Fiscal Year 2022 the federal deficit will once again exceed $1 trillion (4.5 percent of GDP). However, much has happened since that CBO estimate was made. Three hurricanes have battered the United States and its territories, congressional leaders on both sides have suggested increases in discretionary spending…
These proposals are expected to face strong resistance, especially among Democrats and even many Republicans who support many of the programs facing reductions.
Driven by demographics and a historically slow recovery, America finds itself reaching debt levels unparalleled in seven decades.
More and more, standard operating procedure in Congress seems to employ “creative” accounting methods to game the system and get around defense spending caps.
U.S. debt held by the public will become larger than the nation’s economy by 2040, and continue to grow thereafter, according to the Congressional Budget Office.
Step-by-step immigration reform can have a powerful positive effect on the economy if it addresses multiple aspects of the immigration system.
BPC’s study establishes a basis to assess the macroeconomic and fiscal implications of different approaches to immigration reform.