Salient to Investors:
The CBO predicted:
- Current federal tax and spending policies are unsustainable.
- US debt held by the public will rise 74 percent of GDP in 2014 to 78 percent in 2024, and to 106 percent in 2039.
- Social Security and federal health-care programs would account for 14 percent of GDP by 2039 versus the 7 percent average over the past 40 years.
- Net interest payments on the debt would increase to 4.5 percent of GDP by 2039 versus the average of 2 percent over the past four decades.
- The budget deficit will drop to $492 billion in 2014, the lowest level since 2008 and versus a record $1.4 trillion in 2009, but will increase in 2016 on higher spending on Medicare and Medicaid.
- The budget deficit will increase to 3.7 percent of GDP in 2024 and 6.4 percent in 2039 versus 2.8 percent in 2014.
Read the full article at http://www.bloomberg.com/news/2014-07-15/federal-debt-to-reach-106-of-economy-in-2039-cbo-says.html
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