CBO: 2018 budget deficit to reach $804B

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At the same time, the 2018 budget passed earlier this year increases military and domestic spending by about $300 billion. They will remain above $1 trillion for the foreseeable future, the analysts said, painting a better economic picture but a significantly worse fiscal picture than past year.

While the short-term rise in GDP is certainly some good news for the economy, the projected deficits over that time span are concerning.

Republicans once laced into President Barack Obama for trillion-dollar-plus deficits but mostly fell quiet on Monday's news. It is hard to imagine any cuts to Social Security, Medicare or other public programs, even though they make up a good portion of the budget - That would be a "political non-starter".

"It's going nowhere", said Sen.

The CBO report said the tax cuts will give a serious boost to the economy in the near term. President Trump has promised growth of over 3 percent, and based his economic policy on that sustained rate.

The head of the Peter G. Peterson Foundation, which advocates for more balanced budgeting, said the debt would hit its highest level since World War II in 10 years, crowding out private investment and reducing the government's flexibility to respond to downturns.

"Now that those tax cuts are in place, I predict that deficits will once again morph into a dire problem - a scourge upon the nation - an excuse for Republicans to target Medicare, Medicaid, and Social Security for cuts", Schumer said.

But rising interest rates will soon sap some of that surge, the analysts said.

The POTUS has indeed surprised the country, as according to the CBS' estimate, the 2018 deficit is $242 billion more than the office calculated past year.

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Deficits remain at 5.1% through 2025 before dipping in later years to average 4.9% of GDP over the 2021-2028 period. Compared to the basic scenario, the alternative projects an additional $2.6 trillion in deficits over the next 10 years. This became law only weeks following the tax cut went to effect.

As it is now, things are looking bad enough.

Moreover, the Trump administration plans to increase spending drastically over the next two years.

The government would borrow about 19 cents of every dollar it spends this year.

"No one can say they didn't see this coming".

"To address our federal debt, we must slow the growth of entitlement spending, increase revenues with a growing economy, and make responsible spending cuts", Lankford said in a statement. "Now that it's upon us, those who have their heads buried in the sand are in for a rude awakening". The political theory behind this combination was that Republicans needed to take advantage of their full control of government to pass the tax cuts Democrats opposed, which exclusively benefit the very rich.

"The budget outlook is no reason for alarm", wrote Paul N. Van de Water, senior fellow at CBPP.

The House vote is aimed more at the politics of a midterm election in which lawmakers can cast a vote that says they care about deficits, even as Congress has done the opposite.

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