American debt could explode above 200% of GDP two decades if Trump’s tax reduction becomes permanently, says CBO – putting it on unsustainable levels

• Office for non -partisan congress budget They would evaluate what impact it would be if the reduction of taxes and the Law on the workplace would become permanent. It was found that the US debt that holds the public could increase above 200% of GDP to 2047 and 250% by 2054, assuming that higher debt burden also exert more pressure on borrowing costs.

President Donald Trump’s tax tax would send an American debt that has kept the public above 200% of GDP for several decades, according to a new estimate of the non -party budget office.

Trump’s achievement on the economic policy of signing from his first term should be expired at the end of this year, but he and the top Senate Republicans urged them to become permanent.

Some fiscal conservatives pushed, however, a leading Republican MP to ask for a CBO to assess what would have done this to state debt.

In response, CBO said on Friday If the law on tax and job reduction laws permanently expanded and there were no other changes in fiscal policy, the debt that kept the public would reach 214% of GDP 2054.

And assuming that borrowing costs are facing higher pressure in the midst of deteriorating a fiscal situation, which was an additional 1 percentage points, the debt would reach 204% of GDP 2047 and exceeded 250% in 2054.

Total American debt It amounts to $ 36 trillion and the debt holding the public is about $ 29 trillion. Cost of US debt payment service already performs $ 1 billion a year, Even more than the pentagon budget, adding further long.

“The macroeconomic effects of feedback would further increase interest rates and, therefore, brought to even worse fiscal outcomes,” The Peter G. Peterson Foundation warned. “Such discoveries show sensitivity to national finances to borrow costs.”

According to the current basic estimate of the CBO, which assumes that the reduction of taxes expires – a little probably the scenario – the debt would succeed at 166% to 2054. With 99% today. Even this prognosis would break the records, at the top of the previous maximum during the immediate consequences of World War II, while the debt would continue to grow.

Said the White House Officer Wealth That the reforms of Trump’s administration on the supply side, such as greater energy production, deregulation and reduction of consumption, will stimulate growth and expand the tax basis. This would also reduce inflation, allowing federal reserves to reduce interest rates and facilitate borrowing costs.

The official added that the administration plans to collect revenue from the tariff, noting that Trump’s Chinese duties from the first term have collected hundreds of billions of dollars without having a lot of inflation or growth.