Congressional Budget Office Estimates More taxes, more Spending, More Debt in 25 Years in the U.S.

Congressional Budget Office Estimates More taxes, more Spending, More Debt in 25 Years in the U.S.Even if the tax as well a spending policies do not change at all, but still the U. S. budget may have a different kind of look in the coming twenty five years.

On Tuesday, the Congressional Budget Office forecasted that that revenue that the federal government collects could rise as a percent of economy but the government spending is also estimated to grow. However, the growth in government spending is expected to rise at a faster pace than the growth in revenue.

The CBO in its long-term budget point of view said that as a result of this the accumulated public debt of the country may cross hundred percent of the GDP (gross domestic product) by the year 2040 which is an increase from the present 74 percent. This was the first budget outlook that was published under Keith Hall, the agency's new director.

With time, as the aging population increase the health costs will also grow and so will the interest rates. From the U. S revenue the ever-growing share will move to the biggest entitlement programs of the country like Social Security and Medicare along with the interests to be paid on the debt.

However, the federal spending defense, research, education and food safety is supposed to drop to 6.9 % of the GDP, which is less than the average of 11.6 percent planned for long-term.

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