FISCAL BLOG

Social Security is an integral part of the nation’s fiscal picture and a vital economic lifeline for millions of recipients.

In 2021, health spending in the United States totaled $4.3 trillion and averaged nearly $13,000 per person.

Many Americans, young and old, may be confused by the complex set of issues that comprise how the government raises revenues and allocates them.

When the US government reaches its debt ceiling, the Treasury can use a variety of accounting maneuvers, known as “extraordinary measures” to keep the federal government from defaulting on its debts.

When the debt limit is close to being breached, or when a suspension of the ceiling is nearing, lawmakers would have to act to avoid serious economic and budgetary consequences.

For 2023, the Congressional Budget Office (CBO) estimated in May that the federal budget deficit will total $1.5 trillion.

According to CBO, provisions in the Fiscal Responsibility Act of 2023 will result in a $1.5 trillion decrease to the deficit over the next 10 years.

The country’s fiscal trajectory got notably worse over the past year.

Let’s look at the trends in discretionary spending and how effective caps are in reducing the debt.

As part of a potential deal to raise the debt ceiling, policymakers are considering rescinding remaining funding for COVID-19 relief.