"Changes in fiscal policy must be made to address the budget situation because our debt is growing on an unsustainable path," the CBO says.
“The current levels of debt are unprecedented in peacetime during a growing economy, and the consequences of this irresponsible spending are unknown."
The budget gap could top $1 trillion for the full fiscal year.
“The budget picture is deteriorating as the U.S. taxes individuals and companies less and spends more, mostly on defense and benefit payments."
The White House blames increased spending for the mounting deficit but its own data "suggest falling revenues were a far larger contributor."
Increased government spending and tax cuts are “keeping the country on track to record its biggest annual deficit in six years."
The U.S. government's rising debt "would have serious negative consequences for the budget and the nation," the CBO warned this week.
The February shortfall is an early indication of the effects of the GOP tax cuts, with withholding taxes falling 2%.
The short-term economic boost that the GOP-proposed tax cuts would generate wouldn't be sustainable without growth in the already-tight labor market.
Projected budget deficits have also increased amid ‘surprisingly weak tax collections.’
The stronger dollar, larger federal budget deficits, and low national saving rates could force further widening in the trade deficit.
Donald Trump's threat to impose heavy tariffs on Mexico and China addresses a nonexistent problem. He should focus instead on the federal budget deficit.
