US Debt Set to Skyrocket to Record Over Next Decade, CBO Says.

UNITED States. Congressional Budget Office; DEBT; PUBLIC debts; BUDGET

According to the Congressional Budget Office, US debt held by the public is projected to reach a record high in the next decade due to increasing costs for mandatory programs and net interest payments. By the end of fiscal 2034, total debt is expected to be 116% of gross domestic product, more than double the 50-year average. The rise in debt is driven by higher spending on elderly care, healthcare, and social security, as well as increasing net interest payments. Although the near-term fiscal deficit outlook has improved slightly, concerns remain about the government's borrowing requirements. The projections assume that current law will remain in place, but political pressures could lead to changes in spending caps or tax cuts. The expiration of individual tax cuts in 2025 is already under strain, as some Republicans, including former President Donald Trump, have vowed to make the cuts permanent. President Joe Biden has proposed extending the cuts for those earning less than $400,000 a year, but with new revenue. [Extracted from the article]

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