The Congressional Budget Office (CBO) raised its projection for this year’s federal deficit to $506 billion, up from $492 billion in its last report. The Hill,
“But the CBO said it is increasing the deficit figure now, in part, because receipts from corporate income taxes are turning out to be $37 billion less than expected…
“After 2018, the deficit is expected to rise to about 4 percent of GDP through 2024. Deficits over the last 40 years have averaged about 3.1 percent of GDP.
“The CBO also projects the federal debt for this year will reach 74 percent of GDP — double its 2007 level and higher than any year since 1950. Debt is estimated to hit 77 percent of GDP in 2024…
“The agency says higher debt would cause federal spending for interest payments to increase, restrain long-term economic growth and leave lawmakers with less flexibility to address fiscal challenges.
“The deficit is expected to reach $960 billion in 2024 due to an aging population, rising healthcare costs and an expansion of federal subsidies for insurance.”
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