Deficit to top $1 trillion per year by 2020, CBO says

Members of both parties further added to the deficit in March when they increased military and domestic spending by nearly $300 billion over the next two years.

 

During the debate over the bill, Republican leaders predicted their bill would spark massive economic growth that would limit — or even eliminate — the additions to the deficit. But the CBO projected Monday that the bill would boost economic growth 0.7 percent over a decade — not enough to keep it from adding to the deficit.

 

The new tax law that President Trump and congressional Republicans passed in December will cut government revenue by $1.3 trillion from 2018 to 2028, CBO reported. When the costs of paying interest on that debt are included, the tax cuts’ total addition to the deficit comes to $1.9 trillion, CBO said.

 

“The federal deficit grows substantially over the next several years,” CBO Budget Director Keith Hall said Wednesday after his agency released the report. “Federal debt is projected to be on a steadily rising trajectory throughout the decade.”

 

America’s deficit is rising sharply and will surpass $1 trillion a year by 2020, a gap that has grown since Congress cut taxes and increased spending, the Congressional Budget Office reported Monday.

 

 

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