{"id":2284496,"date":"2024-06-27T09:57:02","date_gmt":"2024-06-27T13:57:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/shock-deficit-headed-to-3-trillion-to-consume-75-of-all-tax-revenue-washington-examiner\/"},"modified":"2024-06-27T10:01:32","modified_gmt":"2024-06-27T14:01:32","slug":"shock-deficit-headed-to-3-trillion-to-consume-75-of-all-tax-revenue-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/shock-deficit-headed-to-3-trillion-to-consume-75-of-all-tax-revenue-washington-examiner\/","title":{"rendered":"Shock: Deficit headed to $3 trillion, to consume 75% of all tax revenue &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fshock-deficit-headed-to-3-trillion-to-consume-75-of-all-tax-revenue-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2284496&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The summary details a worrying forecast regarding the U.S. <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/5-reasons-making-taxpayers-pay-off-student-loans-is-a-rotten-idea\/\" title=\"5 Reasons Making Taxpayers Pay Off Student Loans Is A Rotten Idea\">federal budget deficit<\/a>, \u200bas highlighted in a new \u2062Manhattan Institute report by \u200dbudget expert Brian Riedl. The report warns that the deficit, which has \u200calready doubled to $2 trillion in recent\u2063 years, is on track to reach $3 trillion within a decade.\u200c A significant portion of this financial strain is attributed \u2063to escalating costs associated \u200bwith Social Security and Medicare, which are projected to \u200dface a $124 trillion shortfall over the \u2064next 30 years.<\/p>\n<p>According to Riedl, without substantial\u2064 reforms, these costs will significantly burden the federal budget, potentially consuming between \u200chalf and\u200d three-quarters of \u200call federal tax revenues\u200b in interest\u2062 payments alone. This scenario could\u200c lead to unsustainable borrowing demands, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/job-openings-ease-but-remain-high-amid-feds-efforts-to-dent-labor-market\/\" title=\"Job Openings Ease, but Remain High Amid Fed\u2019s Efforts to Dent Labor Market\">pushing interest rates higher<\/a> and jeopardizing the U.S. government&#8217;s ability to meet its financial\u200d obligations, with severe implications for the economy.<\/p>\n<p>The\u200b report outlines a series of reformative actions, segmented into four tiers, starting with optimizing efficiency in \u200cmajor health programs to curb rising expenditures. Riedl stresses the urgency of these reforms, particularly\u2062 advising conservatives to act swiftly to \u2064mitigate future economic hardship characterized by possible massive tax increases.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>As if this month\u2019s warning that the <a href=\"https:\/\/www.washingtonexaminer.com\/opinion\/3051724\/bidens-busting-budget\/\" target=\"_blank\" rel=\"noopener\" title>federal budget deficit<\/a> was pushing $2 trillion wasn\u2019t bad enough, a new analysis out today shows it growing to $3 trillion in 10 years.<\/p>\n<p>And worse: payment on the interest will eat three-quarters of tax revenue.<\/p>\n<p>\u201cIn short, Washington is on a totally unsustainable fiscal path, and a debt crisis is coming,\u201d said the new <a href=\"https:\/\/manhattan.institute\/article\/a-comprehensive-federal-budget-plan-to-avert-a-debt-crisis-2024\" target=\"_blank\" rel=\"noopener\" title>Manhattan Institute report<\/a> from budget expert <a href=\"https:\/\/x.com\/Brian_Riedl\" target=\"_blank\" rel=\"noopener\" title>Brian Riedl.<\/a><\/p>\n<p>Almost all of the shortfall can be blamed on Social Security and Medicare spending, he said.<\/p>\n<p>Riedl\u2019s report, shared with <em>Secrets<\/em>, is a blunt assessment of the nation\u2019s fiscal situation and it includes an equally blunt list of solutions starting with cuts to spending and tax increases.<\/p>\n<p>It also includes a warning to <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/conservatives\/\" target=\"_blank\" rel=\"noopener\" title>conservatives<\/a>: Act fast, or the result will be <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/why-democrat-leadership-is-terrifying\/\" title=\"Why Democrat Leadership is Terrifying\">massive tax hikes<\/a> in the future to keep Washington afloat.<\/p>\n<p>It is a long and thorough report, but here are the highlights.<\/p>\n<p>He writes in the summary, \u201cAnnual budget deficits doubled to $2 trillion over 2022\u201323 and are headed toward $3 trillion a decade from now. Social Security and Medicare face a combined $124 trillion cash deficit over the next 30 years. The national debt is projected to soar past 165% of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/its-official-trump-crushes-record-for-largest-gdp-increase-in-us-history-3rd-quarter-gdp-up-33-1\/\" title=\"IT'S OFFICIAL: Trump Crushes Record for Largest GDP Increase in US History -- 3rd Quarter GDP Up 33.1%\">gross domestic product<\/a> (GDP) within three decades \u2014 or as high as 300% of GDP if <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-falls-to-3-1-in-november-in-positive-sign-for-economy\/\" title=\"November sees a positive economic sign as inflation drops to 3.1%\">interest rates remain elevated<\/a> and Congress extends expiring policies.\u201d <\/p>\n<p>The summary continues, \u201cAt that point, interest costs could consume half to three-quarters of all federal tax revenues. Unless reforms are enacted, Washington\u2019s escalating borrowing demands will come to overwhelm the capacity of financial markets to supply this much lending at plausible interest rates. When that event occurs, or even approaches, interest rates will soar and the federal government will not be able to pay its bills, with dire consequences for the U.S. economy.\u201d<\/p>\n<p>He has four tiers of fixes:<\/p>\n<p><strong>Tier 1:<\/strong> Squeeze out inefficiencies from the major health programs driving spending upward (as close to a free lunch as is available).<\/p>\n<p><strong>Tier 2:<\/strong> Trim Social Security and Medicare benefits primarily for upper-income retirees (who can most afford the changes).<\/p>\n<p><strong>Tier 3:<\/strong> Trim other federal programs to the extent feasible on a bipartisan basis.<\/p>\n<p><strong>Tier 4:<\/strong> Close the remaining gap with new taxes in the least damaging manner possible.<\/p>\n<p>The report realizes the political hurdles, especially in an <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/2024-elections\" target=\"_blank\" rel=\"noopener\" title>election year<\/a>: \u201cAmerican presidents, lawmakers, and even voters are in deep denial of the fiscal reckoning that is ahead. Interest rates are already rising, and politicians have made popular long-term spending commitments that vastly exceed what they are willing to tax and what the financial markets will be able to lend.\u201d <\/p>\n<p>The report continues, \u201cThe only decision is whether Washington gradually imposes savings proposals on its own terms, or whether it waits for a debt crisis to impose much more drastic and painful savings reforms.\u201d<\/p>\n<p>But, he said, action is required soon to avoid a tax-heavy solution.<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/news\/washington-secrets\" target=\"_blank\" rel=\"noreferrer noopener\">SEE THE LATEST POLITICAL NEWS AND BUZZ FROM WASHINGTON SECRETS<\/a><\/strong><\/p>\n<p>\u201cIf lawmakers wait another five to 10 years, they will likely have missed the window on entitlement reform; and tax increases, including a VAT of 10%\u201315%, will become overwhelmingly likely to avoid a debt spiral,\u201d he wrote, adding, \u201cConservatives can either: 1) concede 2% of GDP in limited taxes now, as part of a grand deal with fundamental spending reform; or 2) wait 10 years and end up with little to no spending savings and a European-size VAT.\u201d<\/p>\n<p>See the <a href=\"https:\/\/manhattan.institute\/article\/a-comprehensive-federal-budget-plan-to-avert-a-debt-crisis-2024\" target=\"_blank\" rel=\"noopener\" title>full report here.<\/a><\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This month&#8217;s alarming news revealed the federal budget deficit nearing $2 trillion. Today&#8217;s analysis predicts it will hit $3 trillion in a decade. Even more concerning, interest payments could consume three-quarters of tax revenue. Experts warn that Washington is on an unsustainable fiscal trajectory<\/p>\n","protected":false},"author":2647,"featured_media":2284497,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/06\/Biden-Budget-Bidenomics-scaled-1024x683.webp","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[33008,9647,10530,33007,32076],"class_list":["post-2284496","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-3-trillion","tag-deficit","tag-shock","tag-tax-revenue","tag-washington-examiner"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/06\/Biden-Budget-Bidenomics-scaled-1024x683.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2284496","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2647"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2284496"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2284496\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2284497"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2284496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2284496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2284496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}