(NationalSentinel) During his first two full days in office, President Donald J. Trump has signed executive actions aimed at deflating Obamacare and neutering nanny-state agencies like the EPA, while vowing to take an ax to the massive pile of federal regulations that choke businesses and kill jobs.
That is likely part of a multi-stage strategy aimed at boosting worker opportunities all over the country, and we’d all better hope that it pays off because frankly, the Trump administration will need the money.
Absent any real budgetary reforms, like handing Medicare and Medicaid over to the private sector, spending levels are only going increase, and with them the level of national debt, which the Congressional Budget Office says is approaching a record high.
As reported by the Washington Free Beacon:
The Congressional Budget Office issued its latest budget and economic outlook: Government spending is projected to outpace federal tax revenues over the next decade, driving up the debt to record-high levels.
The federal government collected $17 billion more in revenues in 2016 than in 2015, and most of that money came from individual income taxes. Overall, the budget office predicts that revenues will rise by 4 percent on average over the next decade, rising to 18.4 percent of gross domestic product by 2027.
Despite the increasing amount of taxes that the federal government is collecting from the American people, the amount the government spends is even greater.
The budget office projects that spending on major benefit programs such as Medicare and Social Security as well as increasing interest on the debt will outpace federal revenues in the coming years.
While federal revenues are expected to rise by 4 percent, outlays are projected to rise by 5 percent per year on average over the next decade, hitting 23.4 percent of gross domestic product in 2027.
“Such a pattern over the next 10 years would cause debt held by the public to increase from 77 percent of GDP at the end of both 2017 and 2018 to 89 percent at the end of 2027,” the budget office explains.
Add to this the fact that Trump and the GOP Congress are examining plans to dramatically cut taxes on corporations and individuals–and while that sounds great, it could mean even larger increases in our national debt barring fundamental structural changes in the law. Already the vast majority of the budget is mandated spending, not discretionary spending.
We’d like to believe that the Trump team has a plan for debt reduction as well–after all, the new president said during the campaign that he wanted to eliminate the national debt before he leaves office (in either years). But the plans we’ve seen so far conflict; most call for more debt.
We’ll see. But for right now, the debt is only moving in one direction: Up.