U.S. National Debt Tops $35T for First Time
America's national debt has exceeded $35 trillion, with projections reaching $56 trillion by 2034. Political candidates avoid the issue, raising concerns about fiscal responsibility amid rising costs and interest rates.
Read original article
America's national debt has surpassed $35 trillion for the first time, highlighting significant fiscal challenges as political debates over taxes and spending intensify. The Treasury Department reported this milestone amid rising federal program costs that have exceeded initial estimates. The Congressional Budget Office projects the debt could reach $56 trillion by 2034, driven by increasing spending and interest expenses that outpace tax revenue. Presidential candidates, including Vice President Kamala Harris and former President Donald Trump, have largely avoided discussing the national debt, raising concerns that the situation may worsen. High interest rates and costly federal programs, some of which were implemented during the pandemic, have exacerbated the debt issue. The Biden administration's recent budget aims for $3 trillion in deficit reduction over a decade, primarily through tax increases on high earners and corporations. In contrast, Republicans argue that their proposed tax cuts would not worsen the debt. The budget office anticipates that annual interest costs will rise significantly by 2034, potentially equating to Medicare spending. As Congress prepares to address the debt limit and expiring tax cuts next year, there is a lack of concrete plans from presidential candidates to tackle the growing debt. Budget experts express concern over the absence of serious discussions on fiscal responsibility, especially with the election approaching and projections indicating an additional $1 trillion in debt during this period.
Related
IRS collected $1B in back taxes from millionaires in less than a year
The IRS collected $1 billion in back taxes from millionaires, part of increased enforcement efforts funded by the Inflation Reduction Act. The Biden administration showcases IRS crackdown on wealthy tax evaders.
IRS Crackdown on Delinquent Millionaires Yields $1B
The Biden administration's IRS crackdown on wealthy delinquent taxpayers yielded $1 billion. The initiative targets high-income individuals, enhances enforcement, and aims to increase tax revenue, emphasizing fairness and compliance.
39% of Americans worry they can't pay the bills
A CNN poll shows 39% of Americans worry about paying bills, up from 28% in December 2021, with significant concerns among minorities and low-income earners, despite low unemployment and easing inflation.
IRS collects milestone $1B in back taxes from high-wealth taxpayers
The IRS has collected $1 billion in back taxes from high-wealth taxpayers, focusing on those with incomes over $1 million, amid political pressures and proposed budget cuts from Republicans.
The US fiscal mess: Some unpleasant fiscal simulations
The US federal debt is projected to rise significantly by 2034, necessitating a gradual fiscal consolidation plan. Immediate reforms are essential to avoid larger deficits and economic harm.
7 comments- The number is so big it is now an imaginary, abstract concept. A trillion cannot be imagined or comprehended, even when explained by dividing into comprehensible numbers. No perceived reality means it doesn’t really exist.
- The lack of consequences (certainly immediate, but probably longer-term) means this is an abstract intellectual concept. Abstract-loving types will be intrigued, others will devote brain power to more practical matters throughout the day.
- The culture is generally okay with spending exceeding income at every level from household, to locally financed projects, to larger corporations, to the largest budgets of the government. Personally I think household economics should influence and does inform government spending, which is a controversial stance, but regardless if you agree with liking it or not, I hope you’ll agree the culture is generally comfortable with debt.
- Generational plans are typically an uphill battle against the needs of the moment. Not specifically an American item perhaps, and I will refrain from commenting on why this is so, but nevertheless another main factor, in my opinion.
Pointing out the problems is always easier than fixing them, so I apologize for stopping here without providing my personal utopian solutions.
People who mention military spending don't understand we actually underspend given our GDP. As a percentage of GDP, we rank somewhere in the mid/high range of countries (this is the best way to measure, otherwise try comparing Vatican city budget vs Chinese military budget...).
Elon said Optimus robots, once fully integrated with the economy, will be a major deflationary factor and would allow for GDP growth to overcome the debt issue. Hopefully we don't need to rely on something like that and can actually fix this issue.
Aging societies need more money for social security and healthcare of the elderly than the thinning 18-64 cohort can provide, and you can extract only so much taxes out of the working population before they revolt.
Against such massive secular trends, Sweden is as helpless as South Korea or the USA. You could probably expropriate the billionaires once, use the money for several months, then in a year be in the same pickle again.
No one can yet really run an economy when kids aren't born. A lack of humans is a fundamental shortage.
Great work from both sides.
Good teamwork.
Related
IRS collected $1B in back taxes from millionaires in less than a year
The IRS collected $1 billion in back taxes from millionaires, part of increased enforcement efforts funded by the Inflation Reduction Act. The Biden administration showcases IRS crackdown on wealthy tax evaders.
IRS Crackdown on Delinquent Millionaires Yields $1B
The Biden administration's IRS crackdown on wealthy delinquent taxpayers yielded $1 billion. The initiative targets high-income individuals, enhances enforcement, and aims to increase tax revenue, emphasizing fairness and compliance.
39% of Americans worry they can't pay the bills
A CNN poll shows 39% of Americans worry about paying bills, up from 28% in December 2021, with significant concerns among minorities and low-income earners, despite low unemployment and easing inflation.
IRS collects milestone $1B in back taxes from high-wealth taxpayers
The IRS has collected $1 billion in back taxes from high-wealth taxpayers, focusing on those with incomes over $1 million, amid political pressures and proposed budget cuts from Republicans.
The US fiscal mess: Some unpleasant fiscal simulations
The US federal debt is projected to rise significantly by 2034, necessitating a gradual fiscal consolidation plan. Immediate reforms are essential to avoid larger deficits and economic harm.