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The majority of voters in key battleground states say it’s important for presidential candidates to have a plan to prevent automatic cuts to Social Security.
Despite a healthy economy, the underlying deficit nearly reached $2 trillion for the second year in a row.
More than 9-in-10 voters across seven key states say it’s important for candidates to have a plan for the debt.
New swing state polling reveals that 2024 voters overwhelmingly believe that the rising national debt is a critical campaign issue.
Medicare spending totaled 3.1 percent of gross domestic product (GDP) in 2023 and is projected to climb to 5.4 percent of GDP by 2054.
One of the most fundamental responsibilities of the federal government is to set and pass a budget every year, allocating funding towards the nation’s needs and priorities.
A continuing resolution is a temporary funding measure that Congress can use to fund the federal government for a limited amount of time.
“Voters are clearly concerned about the growing national debt, and they want their Presidential and Congressional candidates to put forward solutions,” said Michael A. Peterson.
Higher short- and long-term Treasury rates mean that the federal government's borrowing costs will also rise.
Healthcare spending in the United States is rising, with serious implications for the federal budget.
Here’s an overview of inflation, why it matters, and how it’s managed.
SNAP is the largest federal program aimed at combating hunger and food insecurity among low-income Americans.
The treatment of carried interest continues to be one of the most controversial elements of the U.S. tax code.
Because government shutdowns are unique to the U.S., it is helpful to understand their history, why they occur here, and how peer countries avoid them.
“Voters are clearly concerned about the growing national debt, and are calling for answers from the candidates at the September 10 presidential debate,” said Michael A. Peterson.
As the largest program in the federal budget, Social Security is a critical part of our nation’s fiscal picture and vital to millions of elderly recipients.
Site neutrality refers to the idea that patients should pay the same price for the same services regardless of where the service is performed.
While the capital gains tax affects anyone selling a capital asset, higher-income individuals are typically subject to the tax more so than average Americans.
The combination of higher debt levels and elevated interest rates have increased the cost of federal borrowing.
The federal government is slated to borrow about $1.9 trillion this year, and that annual shortfall is projected to grow to $2.9 trillion by 2034.
At $35 trillion and rising, the national debt threatens America’s economic future. Here are the top ten reasons why the national debt matters.
Federal trust funds bear little resemblance to their private-sector counterparts.
The Medicare Advantage allows beneficiaries enrolled in both Part A and Part B to receive benefits from private plans.
Medicare is an essential health insurance program serving millions of Americans, and a major part of the federal budget and our fiscal outlook.
Social Security is an essential program for millions of Americans, but it’s at risk if lawmakers fail to take action to reform the program.
Public schools for students in kindergarten through 12th grade are financed through a combination of local, state, and federal dollars in proportions that vary across and within states.
Despite higher healthcare spending, America’s health outcomes are not any better than those in other developed countries.
Right now, Social Security’s finances are in trouble, and without reform the program will be unable to pay out full benefits in about a decade.
National security is both a vital priority and a significant part of the federal budget.
Programs that millions of Americans depend on and care about may be feeling a squeeze from interest costs on our high and rising national debt.
The nation’s high and rising levels of debt can affect economic growth and pose a number of risks.
“As we approach the final months of the election campaign, voters want to hear more from their candidates about solutions for the $35 trillion and growing national debt.” said Michael A. Peterson.
Twenty years ago, the United States was on track to substantially reduce the debt, but spending increases and tax cuts altered that course.
Although the debt affects each of us, it may be difficult to put such a large number into perspective and fully understand its implications.
“Crossing $35 trillion in debt is a stark reminder that we need to get serious about securing America’s fiscal future," said Michael A. Peterson, CEO of the Peter G. Peterson Foundation.
A set of new budget estimates from the Office of Management and Budget (OMB) reveals that even if the President’s Budget were implemented in full, debt would still exceed its all-time high by the end of the decade.
“The Solutions Initiative 2024 shows that there is widespread agreement that America’s fiscal challenges are both unsustainable and solvable, and we have many good options to chart a brighter future for our country," said Michael A. Peterson.
Understanding the differences between foreign and native-born workers sheds light on important details of the U.S. economy.
Here we take a closer look at excise taxes in the United States and examine how they fit into the federal budget.
The Congressional Budget Office (CBO) updated its budget and economic projections, which now show that federal deficits are projected to be $2.1 trillion higher over the next decade than the agency projected just a few months ago.
The most recent projections from CBO confirm once again that America’s fiscal outlook is on an unsustainable path — increasingly driven by higher interest costs.
One of the first questions at last night’s debate was about the national debt, and for good reason.
“Voters are deeply concerned about the rising national debt, and tonight’s presidential debate is an important opportunity for the candidates to talk about their plans to stabilize our future," said Michael A. Peterson.
The national debt is expected to exceed its record high in just 3 years.
The CBO projects that extending the TCJA would increase deficits by $4.6 trillion over 10 years.
“CBO’s new report shows that the outlook for America’s critical national debt challenge is worsening," said Michael A. Peterson.
“Voters understand that ‘not touching’ Social Security is not an option because automatic cuts are unacceptable and waiting only makes the problem more costly and difficult to solve,” said Michael A. Peterson.
Tax expenditures are costly for the federal government but they can be effective vehicles for lawmakers to achieve policy goals.
Interest rates on U.S. Treasury securities have a significant influence on federal borrowing costs.
As a large portion of the American population lives well beyond retirement age, the total cost of providing healthcare will grow as well.
One of the largest drivers of that rising debt is federal spending on major healthcare programs, such as Medicare and Medicaid.
The lawmakers we choose this November will face critical fiscal and economic decisions in the near future.
Social Security is the largest single program in the federal budget and makes up approximately one quarter of total federal spending.
The 2017 Tax Cuts and Jobs Act made a number of changes to the corporate tax code, most prominently lowering the top corporate tax rate from 35 to 21 percent.
The depletion dates for Social Security and Medicare’s Trust Funds are rapidly approaching.
Without reform, Medicare spending will continue to rise over the coming years — threatening the HI Trust Fund and placing immense pressure on the federal budget.
Without reform, the Social Security Trust Funds will soon be depleted and unable to pay full benefits.
Today, the Social Security and Medicare Trustees released their annual reports on the programs’ financing, showing that the future of these vital programs remain at risk.
“Today’s Trustees reports drive home the fact that the clock is ticking down on automatic cuts to Social Security and Medicare," said Michael A. Peterson.
The U.S. spent $820 billion on national defense during fiscal year (FY) 2023 according to the Office of Management and Budget, which amounted to 13 percent of federal spending.
Federal spending for international affairs, which supports American diplomacy and development aid, is a small portion of the U.S. budget.
The lawmakers we choose this November will face critical fiscal and economic decisions in the next two, four, and six years.
“Today’s new survey shows that fiscal concerns are top of mind in this election, and they want leaders who are committed to solutions,” said Michael A. Peterson.
The federal government spent $90 billion on housing assistance in 2021, an increase of almost 70 percent from the preceding year.
This piece examines spending on veterans within the budget and outlines the factors that have pushed it higher in recent years.
The President's budget includes a number of tax proposals that would increase revenues and reduce spending by $4.3 trillion over the next 10 years.
Defense spending by the United States accounted for nearly 40 percent of military expenditures by countries around the world in 2023.
The child tax credit (CTC) is a measure administered though the tax code that is designed to make raising children more affordable by easing the financial burden faced by families.
Over the last four decades, federal grants to state and local governments have made up about 17 percent of their total revenues.
There are three widely used measures of federal debt. What are the important differences between these measurements?
Interest costs are on track to become the largest category of spending in the federal budget.
Healthcare spending in the United States is a key driver of the nation’s fiscal imbalance and has risen notably over the past few decades.
“The national debt is already $34 trillion, but as it grows over the next three decades, we’ll spend more than double that on interest alone,” said Michael A. Peterson.
The growing cost of prescription drugs presents a significant challenge to the quality and affordability of healthcare in the United States.
Healthcare spending is a critically important part of the American economy and the federal budget.
GAO projects debt held by the public would more than double over the next 30 years.
Here are the top ten spending categories for the federal budget.
“As Washington navigates short-term budget battles, our long-term fiscal outlook keeps getting more and more dangerous," said Michael A. Peterson.
Here are six key takeaways from CBO’s latest Long-Term Budget Outlook projections.
Sequestration is a budget procedure used by lawmakers to cancel or limit funding in order to meet budget goals.
Up to Us is a nationwide college campus competition for students to build a movement to raise awareness and engagement on America’s long-term fiscal and economic challenges.
Karen Dynan explores the implications of the federal debt burden and the degree of change required to stabilize the national debt.
While this budget would be a step in the right direction, it does not adequately address the underlying structural imbalance that defines our fiscal outlook.
“We need our leaders to rise to the urgency of the moment, but legislative gridlock continues to prevent progress on even the basics of budgeting," said Michael A. Peterson.
The United States lost an estimated $1.8 trillion in revenues through tax expenditures in 2023.
The Treasury projects that debt as a percentage of GDP will grow to more than five times the size of the U.S. economy in the next 75 years.
In 2017, Congress and the President enacted the Tax Cuts and Jobs Act (TCJA), which made significant changes to the tax code for individuals and corporations.
Improving our healthcare system to deliver better quality care at lower cost is critically important to our nation’s long-term economic and fiscal well-being.
“Earlier this month, the Congressional Budget Office released new data showing that interest costs in 2024 will total a staggering $870 billion, a jump of 32 percent and more than $2 billion per day,” said Michael A. Peterson.
A group of respected policy experts share their views on how a bipartisan fiscal commission could help break the cycle of governing by crisis.
Although the need for serious, long-term changes to the funding structure of the Highway Trust Fund is clear, there is disagreement over the approach to do so.
The earned income tax credit (EITC) is a measure administered through the tax code to address poverty.
The words debt and deficit come up frequently in debates about the policy decisions that lawmakers face. The two concepts are similar, but are often confused.
The primary deficit focuses on the difference between government revenues and spending, excluding interest payments. Learn more about the U.S. primary deficit.
"Today’s CBO projections are the latest loud and clear warning about America’s unsustainable national debt," said Michael A. Peterson.
Federal Reserve Chair Jerome Powell, speaking in an interview, said that now is the time to start addressing our $34 trillion and rising national debt.
Medicaid’s role in state budgets is unique, since the program acts as both an expenditure and the largest source of federal support in state budgets.
Significant majorities of voters across party lines agree that a commission would strengthen Social Security, lower borrowing costs, and improve our economic outlook.
Federal programs that invest in children are not only critical to the health and well-being of the youngest Americans, but they can also provide long-term benefits to the nation’s economy.
“As the 2024 campaign heats up, voters are calling on candidates to show leadership by backing a fiscal commission to address our unsustainable national debt,” said Michael A. Peterson.
The Tax Relief for American Families and Workers Act is estimated to cost about $400 million over 10 years.
"Committee passage of the Fiscal Commission Act is an important step toward a comprehensive approach to stabilizing our rapidly growing national debt," said Michael A. Peterson, CEO of the Peter G. Peterson Foundation.
The deduction of state and local tax payments (known as SALT) from federal income taxes has been a subject of debate among economists and policymakers over the past few years — with significant implications for our budget and fiscal outlook.
A fiscal commission would provide the space and structure for lawmakers to comprehensively review the entire budget and improve the fiscal path of the U.S.
Average income among households in the lowest fifth of the income distribution was $21,900, while income for households in the highest fifth averaged $357,800.
“Sadly, we rung in the new year reaching a new record milestone of $34 trillion in national debt,” said Michael A. Peterson.
Tax expenditures can come in the form of exclusions, exemptions, deductions, and credits.
On November 10, 2023, Moody’s Investors Service lowered its outlook on the United States’ credit rating from “stable” to “negative.”
High healthcare spending is not necessarily a bad thing, especially if it leads to better health outcomes. However, that is not the case in the United States.
"We are beginning a new year, but our national debt remains on the same damaging and unsustainable path," said Michael A. Peterson, CEO of the Peter G. Peterson Foundation.
