Budget outlook less bad, but still awful

Yesterday the Congressional Budget Office, the nonpartisan that provides economic and budgetary analysis, released its most recent long-term budget outlook. This outlook includes updates for changes in legislation and executive actions, economic developments, and demographics. The most recent outlook reflects an improvement from last year’s version, but still paints a bleak picture. Under the current law, which envisions the expiration of the Tax Cuts and Jobs Act at the end of 2025 (which will absolutely be extended and likely even expanded), federal debt is projected to rise from 100% of GDP this year to 156% of GDP in 2055, three times the historical average.