As the tax reform debate begins to heat up, businesses and investors are beginning to pay closer attention to the House GOP Tax Reform Blueprint, a tax plan released last June by Speaker Paul Ryan and House Ways and...
- The Tax Policy Blog
- Federal Debt Projected to Exceed 100 Percent of GDP in Ne...
Federal Debt Projected to Exceed 100 Percent of GDP in Next 25 Years
The CBO released their 2014 Long-Term Budget Outlook today. Here are a couple highlights:
- Federal spending is projected to slowly increase over the next 25 years from 20.4 percent of GDP in 2014 to 25.9 percent of GDP in 2039.
- Federal revenue collections is expected to increase over the same timeframe, from 17.6 percent of GDP in 2014 to 19.4 percent of GDP in 2039.
- Over the same timeframe, marginal effective tax rates on labor are projected to increase from 29 percent to 34 percent and marginal effective tax rates on capital are projected to increase from 18 percent to 19 percent.
- Federal spending will increase more rapidly than federal revenues, which will increase the budget deficit.
- The federal debt held by the public has doubled since 2008, due to large deficits in the aftermath of the recession.
- Federal debt held by the public is project to exceed 100 percent of GDP in the next 25 years.
Get Email Updates from the Tax Foundation
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.