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Fed borrowing costs $5 billion per day
By Casey Harper | The Center Square
(The Center Square) – The U.S. annual deficit is nearing $2 trillion for this fiscal year, almost double the record deficits before the COVID-19 pandemic, as federal borrowing hit more than $5 billion per day.
The U.S. Congressional Budget Office reported that the federal deficit hit an estimated $1.8 trillion in fiscal year 2024, $139 billion higher than the deficit from the previous fiscal year.
The troubling deficit news comes as the national debt continues to soar, drawing closer to $36 trillion.
“Within the next dozen years, three major trust funds – for highways, Medicare, and Social Security – will run out of reserves, forcing us to reckon with even tougher decisions on how to keep important government priorities afloat,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a statement.
Notably, the increased debt came even though federal revenue increased by 11%, or $479 billion, according to CBO.
“Revenues in all major categories, but notably individual income taxes, were greater than they were in fiscal year 2023,” CBO said in its report.
Recent analyses of the respective presidential candidates’ tax plans show they would both add to the national debt. A slew of polls in recent years shows that inflation, driven in part by debt spending, is a top concern for Americans.
MacGuineas said the situation could get even worse next year.
“In 2025, lawmakers will face new hurdles,” she said. “Not only rising deficits, debt and interest, but also the reinstatement of the debt ceiling, the end of the Fiscal Responsibility Act’s budget caps, and major tax and spending expirations.
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Categories: National News
Waiting for the comments and there will be many.
Nobody in DC cares about the deficit.
I heard one legislator talking on TV a few weeks ago, she said we know how to fix the problem but the will is not there to do it. More free stuff!
This isn’t taking into account the “off budget” spending. It’s much higher. The people can’t be bothered to learn how the system is ripping us off, and will continue to vote for democrat and republicans who will do nothing about it. We deserve what we allow.
No one is doing “spending cuts”, they just do “lessen the proposed increases in spending” and pretend its a “cut”. It’s a false illusion of choice, and all political parties in power are the same. The only person in political office that I know of that ever had a real plan to start fixing the problem is Ron Paul.
The damage has already been done.
Don’t forget VT is spending like like Socialists do. VT wants to add to the Fed’s deficit by seeking to get “free money” from the Gov to spend more. A merry-go-round, and where does it stop—no one knows, even the spenders.