3.5 C
New York
Sunday, November 28, 2021

Bipartisan Budget Deal Sets Stage for Rising Deficits, CBO Shows

Bipartisan Budget Deal Sets Stage for Rising Deficits, CBO Shows© Bloomberg. The U.S. Capitol building stands in Washington, D.C., U.S., on Tuesday, Dec. 19, 2017. Congressional Republicans kicked off the final leg of their six-week legislative sprint to overhaul the U.S. tax code and deliver a major policy victory for President Donald Trump before year’s end. The House approved the bill Tuesday and Senate leaders intend to vote on it Tuesday evening.

(Bloomberg) — The bipartisan budget deal President Donald Trump hopes to sign this week would set the stage for a massive increase in the federal deficit in coming years, a Congressional Budget Office report shows.

An increase in discretionary spending caps would add $296 billion in spending authority over the next two years — with a follow-up massive spending bill due by March 23 that will allocate which accounts get the extra money.

The plan includes $84.4 billion in discretionary emergency spending for disaster relief, though only about $25 billion of that will be spent in the next two years, CBO estimates. The CBO estimated that nearly $17 billion of the spending won’t even occur in the coming decade.

There also are additional tax cuts for assorted business interests and other changes to mandatory spending, alongside some modest spending trims that will mostly affect fiscal 2026 and 2027 — a couple of presidential terms away.

CBO says that over 10 years the deficit would increase $38 billion by counting only “direct spending and revenue,” but that figure doesn’t consider budget cap adjustments.

The nonpartisan Committee for a Responsible Federal Budget, analyzing the CBO’s report, said the deal would add a net $320 billion to deficits over a decade, or $418 billion counting the additional interest costs.

The deficit-hawk group now expects the deficit will soar to $1.2 trillion in fiscal 2019 alone.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

10,914FansLike
12,893FollowersFollow
753FollowersFollow
- Advertisement -

Latest Articles

Popular Articles