"Productivity growth returns to almost its average over the past 25 years and recent changes in fiscal policy boost incentives to work, save, and invest; nonetheless, economic growth is held down by slower growth of the labor force", the CBO said.
Altogether, deficits over the decade will be $1.6 trillion higher than previously projected by CBO and by 2028, debt held by the public would total almost 100 percent of GDP; the most since post-World War II.
The head of the Peter G. Peterson Foundation, which advocates for more balanced budgeting, said the debt would hit its highest level since World War II in 10 years, crowding out private investment and reducing the government's flexibility to respond to downturns.
The CBO data clearly shows that revenue as a proportion of GDP was expected to have risen back to its 2017 level by 2023 even before the expiration of many tax cuts, showing that from then on its rising spending that is driving the worsening outlook in debt over this period.
The budget deficit is then expected to grow to $1 trillion by 2020.
According to CBO's projections, economic growth is expected to surge over the next two years, with gross domestic product (GDP) expanding by 3.3 percent in 2018 and 2.4 percent in 2019. The economic growth promises to drop the nationwide unemployment rate below 4%, the CBO predicted.
All 435 seats in the U.S. House of Representatives and about a third of the 100-member Senate's seats are being contested. "The American people deserve a Congress that is focused squarely on helping the middle class, not patronizing Kabuki theatre - like sham "balanced budget" votes - from Republicans who blew up the deficit to benefit wealthy special interests".
Some of us are old enough to remember a time when the Republicans claimed to be the fiscal disciplinarians of United States politics. The country's cumulative deficit will balloon to $11.7 trillion from 2018 to 2027, $1.6 trillion higher than previous estimates.
"The CBO's latest report exposes the scam behind the rosy rhetoric from Republicans that their tax bill would pay for itself", Schumer said in a statement Monday.
Donnelly said, "This report confirms my serious concerns about the ballooning deficit, which Speaker Ryan has said he wants to pay for through cuts to Medicare and Social Security, putting seniors and retirees at risk".
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