… and counting.

 

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Click for real-time debt clock

 

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In CBO’s projections, growing deficits drive up debt over the next decade, as spending rises and revenues remain relatively flat as a share of the economy… If current laws generally remained unchanged, the deficit would grow over the next 10 years, and by 2026 it would be considerably larger than its average over the past 50 years, CBO projects. Debt held by the public would also grow significantly from its already high level.

The Congressional Budget Office released it annual report on Monday.  It reports an increase of deficit spending this year of about $15 billion ($544 billion total) and projects continues increases in deficit spending.  Of course these deficits have an effect on federal debt.  In 2008, the national debt was 39.3% of the GDP.  Since then it has grown to 73.6% of the GDP and should reach 75.6% this year.  The CBO estimates it will climb to 86% in 2026.

You can read the full CBO report here.

The Social Security Disability Insurance (SSDI) Trust Fund is on course to run dry in 2016, at which point it will be able to pay only about 80 percent of current benefits. Despite health improvements and technological advancements, the SSDI rolls have continued to rise, with more than 5 percent of working-age individuals now receiving benefits. Substantial inefficiencies, adverse incentives, outdated standards, and widespread fraud and abuse plague the program. – The Heritage Foundation

Almost 11 million Americans are currently eligible for SS Disability benefits. Unless SSDI is reformed, the program will be forced to immediately reduce total benefits by 20% to recipients in 2016. Further reductions are likely in the near future. The Social Security Agency is considering eligibility changes to avoid insolvency and to maintain full disability benefits to those who need it most. (More details are available here.)

President Obama’s new budget proposes $50.3 trillion in spending and collecting $44.7 trillion in taxes for 2016 through 2025. (I guess that means also adding $4.4 trillion in borrowing to cover the difference.) The White House estimates that yearly deficits will stay about the same.

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However, the CBO estimates that under current law, spending would be $49.3 trillion and taxes $41.7 trillion for 2016 through 2025, with deficits building each year. This means the President wants to increase spending by $1 trillion, raise taxes by $3 trillion, still have big deficits, and continue to add trillions of dollars to the national debt. (Gee, it’s like the stimulus all over again.)