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Business Standard
4 days ago
- Business
- Business Standard
US national debt reaches record $37 trillion, Treasury Department reports
The US government's gross national debt has surpassed $37 trillion, a record number that highlights the accelerating debt on America's balance sheet and increased cost pressures on taxpayers. The $37 trillion update is found in the latest Treasury Department report issued Tuesday which logs the nation's daily finances. The national debt eclipsed $37 trillion years sooner than pre-pandemic projections. The Congressional Budget Office's January 2020 projections had gross federal debt eclipsing $37 trillion after fiscal year 2030. But the debt grew faster than expected because of a multi-year Covid-19 pandemic starting in 2020 that shut down much of the US economy, where the federal government borrowed heavily under then-President Donald Trump and former President Joe Biden to stabilise the national economy and support a recovery. And now, more government spending has been approved after Trump signed into law Republicans' tax cut and spending legislation earlier this year. The law set to add $4.1 trillion to the national debt over the next decade, according to Congressional Budget Office estimates. Chair and CEO of the Peter G. Peterson Foundation, Michael Peterson said in a statement that government borrowing puts upward pressure on interest rates, adding costs for everyone and reducing private sector investment. Within the federal budget, the debt crowds out important priorities and creates a damaging cycle of more borrowing, more interest costs, and even more borrowing. Wendy Edelberg, a senior fellow in Economic Studies at the Brookings Institution said Congress has a major role in setting in motion spending and revenue policy and the result of the Republicans' tax law "means that we're going to borrow a lot over the course of 2026, we're going to borrow a lot over the course of 2027, and it's just going to keep going." The Government Accountability Office outlines some of the impacts of rising government debt on Americans - including higher borrowing costs for things like mortgages and cars, lower wages from businesses having less money available to invest, and more expensive goods and services. Peterson points out how the trillion-dollar milestones are piling up at a rapid rate. The US hit $34 trillion in debt in January 2024, $35 trillion in July 2024 and $36 trillion in November 2024. We are now adding a trillion more to the national debt every 5 months," Peterson said. "That's more than twice as fast as the average rate over the last 25 years. The Joint Economic Committee estimates at the current average daily rate of growth an increase of another trillion dollars to the debt would be reached in approximately 173 days. Maya MacGuineas, president of the Committee for a Responsible Federal Budget said in a statement that hopefully this milestone is enough to wake up policymakers to the reality that we need to do something, and we need to do it quickly. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
NBC News
4 days ago
- Business
- NBC News
U.S. national debt reaches a record $37 trillion, the Treasury Department reports
The U.S. government's gross national debt has surpassed $37 trillion, a record number that highlights the accelerating debt on America's balance sheet and increased cost pressures on taxpayers. The $37 trillion update is found in the latest Treasury Department report issued Tuesday which logs the nation's daily finances. The national debt eclipsed $37 trillion years sooner than pre-pandemic projections. The Congressional Budget Office's January 2020 projections had gross federal debt eclipsing $37 trillion after fiscal year 2030. But the debt grew faster than expected because of a multi-year COVID-19 pandemic starting in 2020 that shut down much of the U.S. economy, where the federal government borrowed heavily under then-President Donald Trump and former President Joe Biden to stabilize the national economy and support a recovery. And now, more government spending has been approved after Trump signed into law Republicans' tax cut and spending legislation earlier this year. The law set to add $4.1 trillion to the national debt over the next decade, according to Congressional Budget Office estimates. Chair and CEO of the Peter G. Peterson Foundation, Michael Peterson said in a statement that government borrowing puts upward pressure on interest rates, 'adding costs for everyone and reducing private sector investment. Within the federal budget, the debt crowds out important priorities and creates a damaging cycle of more borrowing, more interest costs, and even more borrowing.' Wendy Edelberg, a senior fellow in Economic Studies at the Brookings Institution said Congress has a major role in setting in motion spending and revenue policy and the result of the Republicans' tax law 'means that we're going to borrow a lot over the course of 2026, we're going to borrow a lot over the course of 2027, and it's just going to keep going.' The Government Accountability Office outlines some of the impacts of rising government debt on Americans — including higher borrowing costs for things like mortgages and cars, lower wages from businesses having less money available to invest, and more expensive goods and services. Peterson points out how the trillion-dollar milestones are 'piling up at a rapid rate.' The U.S. hit $34 trillion in debt in January 2024, $35 trillion in July 2024 and $36 trillion in November 2024. 'We are now adding a trillion more to the national debt every 5 months,' Peterson said. 'That's more than twice as fast as the average rate over the last 25 years.' The Joint Economic Committee estimates at the current average daily rate of growth an increase of another trillion dollars to the debt would be reached in approximately 173 days. Maya MacGuineas, president of the Committee for a Responsible Federal Budget said in a statement that 'hopefully this milestone is enough to wake up policymakers to the reality that we need to do something, and we need to do it quickly.'
Yahoo
06-08-2025
- Business
- Yahoo
Voter confidence in U.S. fiscal outlook falls to 13-month low: survey
This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Dive Brief: Confidence among voters in the fiscal health of the U.S. fell in July to the lowest level in 13 months after passage of the Trump administration's massive tax-and-spending bill, the Peter G. Peterson Foundation said. Nearly six out of 10 voters (59%) believe the U.S. is on a risky fiscal path, and 61% expect the nation's debt burden to grow heavier during the next few years, the Peterson Foundation said, citing a survey. The recently enacted legislation will push up the national debt by $4.1 trillion by the end of 2034, according to the Congressional Budget Office. 'Voters are making clear that it's time to stop digging the hole deeper, and want their leaders to take action to stabilize the debt and create a sustainable budget outlook,' Peterson Foundation CEO Michael Peterson said in a statement. 'America currently spends more on interest on the debt than on national defense or Medicaid, and interest costs are also growing faster than both.' Dive Insight: The survey suggests that the Trump administration has not persuaded most voters that the recently enacted legislation — focusing on cutting taxes and scaling back healthcare and social welfare programs — improves the nation's long-term budgetary outlook. Office of Management and Budget Director Russell Vought has repeatedly said that CBO and other estimates are flawed and that the legislation will trim the federal deficit by $1.4 trillion by 2034. Shop Top Mortgage Rates Personalized rates in minutes A quicker path to financial freedom Your Path to Homeownership 'If you care about deficits and debt, this bill dramatically improves the fiscal picture,' Vought said on X in June, referring to the reconciliation bill. Before the July enactment of the legislation, the Government Accountability Office calculated that the public debt will rise from 98% of GDP in September to a record 106% of GDP by 2027. The Trump administration, citing its fiscal program, paints a more optimistic picture. 'President Trump's pro-growth economic policies and reining in wasteful spending are key to improving the fiscal outlook,' the White House said in June. Trump's 'proven economic formula — historic tax relief, rapid deregulation, balanced trade and reining in wasteful spending — will slash our debt down to just 94% of GDP' by 2034. Both Democrats and Republicans, including those in the White House, acknowledge the urgency of putting the U.S. on a sustainable budgetary path. Before passage of the Trump-backed legislation, EY and Peterson estimated that by 2035 the rising national debt would undermine the size of the economy by $340 billion, cut the number of U.S. jobs by 1.2 million and set back private investment by 13.6%. Also, U.S. CEOs identified the nation's debt as 'a ticking time bomb' before President Donald Trump took office in January, the Conference Board said. More than half of CEOs (51%) considered the national debt and deficits as the No. 1 external risk for their businesses, the Conference Board said in January, citing a survey. With rising federal debt, the increase in federal government borrowing pushes up the cost of capital and 'crowds out' private sector borrowing, inhibiting innovation and business investment, according to economists. The murky fiscal outlook, affirmed by downgrades by all three major credit ratings firms, complicates corporate planning, prompting delays in hiring and investment. Reducing the federal debt should be among the top three priorities for Trump and Congress, according to 80% of voters surveyed by the Peterson Foundation, including 83% of Republicans. In June, 76% of voters held that view. The Peterson Foundation commissioned the poll of 1,003 registered voters nationwide between July 21 and July 23. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
AU Financial Review
03-07-2025
- Business
- AU Financial Review
Magic math got Trump's bill through, but it won't make debt vanish
Washington | The national debt clock has been ticking away in New York since 1989 as a dynamic reminder of how much the United States has on its collective credit card bill. But on the streets of Washington DC, a more personal reminder has popped up. The Peter G. Peterson Foundation, named for the late Nixon-era commerce secretary and former investment banker and private equity titan, is running bus shelter billboards that portray the debt per person. On Thursday (Friday AEST), when Republicans passed Donald Trump's major tax cut and spending bill, the figure sat at $US106,110 ($161,590).
The Herald Scotland
21-05-2025
- Business
- The Herald Scotland
Senate unanimously approves tax deduction for tipped income
The deduction would only apply to cash tips and could be claimed by people who earn up to $160,000, which would rise along with inflation. The deduction would only apply to cash tips and could be claimed by people who earn up to $160,000, which would rise along with inflation. Ending taxes on tips would cost around $110 billion in federal revenues over the next 10 years, according to estimates by the center-right Peter G. Peterson Foundation. In a floor speech bringing up the vote, Rosen noted that the proposal was one of President Donald Trump's key campaign promises. "I am not afraid to embrace a good idea, wherever it comes from," she said. "So I agreed we need to get this done." The bill would still need to be approved by the House of Representatives before it could become law. It comes as congressional Republicans are seeking to advance a massive tax cut and spending package that would also create a tax break on tips for the next four years. The measure would have limited impact for low-income workers overall: Only around 2.5% of the workforce are in tipped occupations, according the Budget Lab at Yale. And 37% of tipped workers make so little that they don't pay federal income taxes.
