“Deficits are projected to rise steadily and, by 2039, to push federal debt held by the public up to a percentage of GDP seen only once before in U.S. history [just after World War II],” the agency said.
Publicly held debt will reach 106 percent of GDP by 2039, according to the report, compared to the current 74 percent.
CBO attributed the growth to an aging population claiming Social Security and Medicare benefits, rising health care costs, the expansion of subsidies offered through Obamacare and interest payments on the debt projected to grow sharply as currently low interest rates return to normal levels.
Read more: http://www.politico.com/story/2014/0...#ixzz37bFficFb
The deficit has been falling the last few years but as expected it will begin growing again and really get to unsustainable levels soon. The interest on the debt is the killer here.....it will keep rising as a percentage of the budget and that's just dead money that isn't productive but must be paid. That alone should be a reason to focus on deficit reduction. That is money that could have been used on tax cuts, defense, education, infrastructure, health spending....whatever your priority it's being pissed away because of debt.
Each side has to give a little here. Yes, tax rates on the wealthy need to go up from 35% and yes there has to be serious cost shifting on medical and health benefits to the beneficiary and away from the state. Just increasing eligibility ages doesn't generate that much savings. The answer is pain.....conservative pain and liberal pain.
Publicly held debt will reach 106 percent of GDP by 2039, according to the report, compared to the current 74 percent.
CBO attributed the growth to an aging population claiming Social Security and Medicare benefits, rising health care costs, the expansion of subsidies offered through Obamacare and interest payments on the debt projected to grow sharply as currently low interest rates return to normal levels.
Read more: http://www.politico.com/story/2014/0...#ixzz37bFficFb
The deficit has been falling the last few years but as expected it will begin growing again and really get to unsustainable levels soon. The interest on the debt is the killer here.....it will keep rising as a percentage of the budget and that's just dead money that isn't productive but must be paid. That alone should be a reason to focus on deficit reduction. That is money that could have been used on tax cuts, defense, education, infrastructure, health spending....whatever your priority it's being pissed away because of debt.
Each side has to give a little here. Yes, tax rates on the wealthy need to go up from 35% and yes there has to be serious cost shifting on medical and health benefits to the beneficiary and away from the state. Just increasing eligibility ages doesn't generate that much savings. The answer is pain.....conservative pain and liberal pain.
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