Regulatory Reform’s Role In Addressing The Debt Limit

Spring is here, the first quarter is over, and the federal debt limit is back in play. Again.

The cap was last raised in December 2021 by $2.5 trillion, to $31.4 trillion.

The national debt stands at $31.5 trillion. If you think that’s enough you’d be wrong since the intent is to increase the limit still further to avoid default. In the meantime, as has occurred in the past, the Treasury Department prioritizes spending with a series of “extraordinary measures” to keep things flowing with the taxes and fees flooding in, which in a normal world would already be more than adequate to maintain surplus.

The federal debt is now greater than our GDP ($23 trillion), and several times the level of 2023 federal discretionary, entitlement, and interest spending, which, as the Congressional Budget Office (CBO) reported in January, stood at $6.272 trillion. CBO projects spending to pass $7 trillion in 2026 and to reach almost $10 trillion by 2033.

The federal debt is now greater than our GDP ($23 trillion), and several times the level of 2023 federal discretionary, entitlement, and interest spending, which, as the Congressional Budget Office (CBO) reported in January, stood at $6.272 trillion. CBO projects spending to pass $7 trillion in 2026 and to reach almost $10 trillion by 2033.

Read the full article on Forbes.