The Congressional Budget Office (CBO) recently projected that the United States will face increasing financial challenges, with deficits expected to grow substantially by the end of 2034. This outlook highlights the pressure on lawmakers as they deal with a rising national debt, driven by an aging population, higher healthcare costs, and the need to fund programs like Social Security and Medicare. Despite President Joe Biden‘s claims of reducing deficits, borrowing went up in 2023 and is predicted to rise further this year, despite his administration’s plan to cut the deficit by $3 trillion over the next decade and increase tax revenues by $4.9 trillion.
According to the article of the Independent, Former President Donald Trump, currently campaigning for the 2024 presidential election, has put forward plans for further tax reductions, including a decrease in the corporate tax rate that he previously lowered while in office. Critics, such as the Committee for a Responsible Federal Budget, approximate that Trump’s policies, whether through legislative measures or executive actions, contributed approximately $8.4 trillion to the national debt over a decade. The CEO of the Peter G. Peterson Foundation cautioned that elevated interest rates might escalate interest expenses on the current national debt, potentially triggering an unsustainable cycle of borrowing.
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