CBO REMINDER: Federal Debt Is Still Soaring
{{#rendered}} {{/rendered}}A general view of the U.S. Capitol dome can be seen to the carriage entrance to the U.S. Senate in Washington December 11, 2014. (REUTERS/Jonathan Ernst)
U.S. debt held by the public will reach 77 percent of GDP by the end of 2025 if tax and spending policies are not reformed, the Congressional Budget Office projects.
The federal deficit is at its lowest since 2011, but the CBO projects it will go back up in the next two years, contributing to a rise in the federal debt.
“To put the federal budget on a sustainable path for the long term, lawmakers would have to make major changes to tax policies, spending policies, or both,” CBO Director Keith Hall said in a presentation to the American Business Conference.
{{#rendered}} {{/rendered}}The rise is driven primarily by the continued growth of health care programs including Medicare, Medicaid and Obamacare subsidies, in addition to higher interest payments on the debt.