#federal-deficit

#federal-deficit

In mid-February, the nonpartisan Congressional Budget Office (CBO) released a shocking report calculating that at the current rate of increase, the national debt is set to hit $64 trillion by 2036. Sixty-four trillion dollars is such an eye-popping number—double the national debt in 2023 and triple where it stood in 2018—that it would mean the public would owe over 120% of overall GDP, crushing the previous record of 106% in 1946.

The nonpartisan Congressional Budget Office's 10-year outlook projects worsening long-term federal deficits and rising debt, driven largely by increased spending, notably on Social Security, Medicare, and debt service payments. Compared with the CBO's analysis this time last year, the fiscal outlook has deteriorated modestly. Major developments over the last year are factored into the latest report, released Wednesday, including Republicans' tax and spending measure known as the " One Big Beautiful Bill Act,"

Well first of all, Maria, we're $38 trillion in debt, he replied. We've averaged $1.89 trillion deficits over the last five years. In the next 10 years, the projection's about $26 trillion from accumulated deficits. We have to address the deficit problem. We are on borrowed time here. So many people are whistling by the graveyard. If we're bringing in revenue through the tariffs, that oughta be applied to reduce the deficit, not just making a cash payment to Americans.

We will be issuing dividends later on probably the middle of next year, a little bit later than that, Trump told reporters in the Oval Office on Monday. Thousands of dollars for individuals of moderate income, middle income. Last week, the president claimed that the checks, which require congressional approval, would be sent out next year. Trump said the idea is to give Americans the tariff money that has been collected on imports.

S&P Global reaffirmed its AA+ credit rating and stable outlook last week due in part to "robust tariff income," which should help offset the impact of tax cuts and spending in the federal budget. While S&P doesn't see meaningful improvement in the fiscal deficit, it doesn't expect steep deterioration either. However, reciprocal tariffs face legal challenges and could be struck down.

The Congressional Budget Office predicts that the megabill Trump signed on July 4 would increase the federal deficit by $3.4 trillion and cause ten million people to lose health insurance.

The One Big Beautiful Bill Act passed by a narrow 51-50 vote, including a tie-breaking vote from Vice President J.D. Vance, amidst significant internal dissent.

After guest Daniel Newman added that higher taxes would add still more uncertainty amidst President Donald Trump's trade wars, McDowell weighed in. "It's also the creep's way out and I use the word creep because they want to let the top rate creep up the creepy way out of not cutting spending," she argued. "And it's just the fact that we're running more than a $2 trillion deficit this year, it will come in higher than Joe Biden's last year in office."