BREAKING NEWS Decatur Police look for capital murder suspect wanted in Danville triple murder Full Story

Interest payments on US debt could top $1 trillion

Pexels

That would be 3.6% of the entire American economy, according to new estimates from the Committee for a Responsible Federal Budget, a fiscal watchdog group.

Posted: Mar 15, 2018 8:47 PM

(CNN Money) -- Interest payments on US debt could quadruple to an eye-popping $1.05 trillion by 2028 if current policies stay in effect.

That would be 3.6% of the entire American economy, according to new estimates from the Committee for a Responsible Federal Budget, a fiscal watchdog group.

By contrast, interest payments last year were $263 billion, or 1.4% of gross domestic product. Historically, interest spending has averaged 2% of GDP.

CRFB's estimates assume lawmakers will choose to make permanent the recent tax cuts — many of which are set to expire after 2025. It also assumes Congress extends the two-year increase in spending caps that just passed as well as other expiring legislation.

Related: U.S. monthly deficit largest in 6 years

Those assumptions are not far-fetched given how difficult it's been for Republicans and Democrats to negotiate fiscal restraint while also trying to keep taxes low, invest in critical areas and pay federal benefits to seniors and veterans.

If all the recent tax cuts and spending increases are extended, interest spending could account for 14% of the entire federal budget in 2028 and amount to more money than would be spent on either defense or Medicaid.

As it is, even if Congress lets the new tax and spending policies expire as scheduled, interest costs could climb to $965 billion by 2028, the CRFB estimates. That would amount to 3.3% of GDP, a record high.

And deficits are likely to start topping $1 trillion as soon as next year.

Next month, the Congressional Budget Office, which is the official nonpartisan scorekeeper for fiscal issues, will put out its 10-year budget and economic outlook.

Its numbers are likely to be in the same ballpark as CRFB's. Just eight months ago, before the tax and spending deals passed, the CBO had estimated interest spending could hit $818 billion, or nearly 3% of GDP, by 2027 as a result of rising interest rates and growing debt.

The-CNN-Wire
™ & © 2018 Cable News Network, Inc., a Time Warner Company. All rights reserved.

Huntsville
Few Clouds
81° wxIcon
Hi: 86° Lo: 68°
Feels Like: 83°
Florence
Clear
82° wxIcon
Hi: 89° Lo: 70°
Feels Like: 84°
Fayetteville
Clear
81° wxIcon
Hi: 85° Lo: 68°
Feels Like: 81°
Decatur
Clear
79° wxIcon
Hi: 87° Lo: 68°
Feels Like: 81°
Scottsboro
Scattered Clouds
81° wxIcon
Hi: 82° Lo: 65°
Feels Like: 84°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 14478

Reported Deaths: 551
CountyConfirmedDeaths
Mobile1996109
Jefferson161488
Montgomery118630
Marshall6499
Tuscaloosa50512
Lee49832
Franklin4476
Shelby43319
Tallapoosa39662
Butler34411
Chambers33623
Madison2964
Baldwin2749
Elmore2637
Etowah23610
DeKalb2213
Coffee2001
Walker1981
Dallas1973
Sumter1916
Lowndes18610
Houston1644
Morgan1621
Autauga1593
Calhoun1413
Choctaw1414
Pike1360
Colbert1362
Marengo1336
Hale1293
Russell1280
Lauderdale1282
Randolph1257
Wilcox1187
Marion11310
Bullock1111
Barbour1101
Clarke1022
St. Clair1021
Pickens934
Talladega912
Greene894
Chilton871
Dale830
Cullman760
Limestone740
Jackson692
Covington651
Washington645
Winston620
Macon602
Bibb591
Crenshaw582
Henry562
Blount491
Escambia433
Lawrence420
Coosa331
Geneva330
Cherokee332
Perry310
Monroe282
Clay272
Conecuh251
Lamar200
Cleburne131
Fayette110
Unassigned00

Tennessee Coronavirus Cases

Confirmed Cases: 20111

Reported Deaths: 336
CountyConfirmedDeaths
Davidson451857
Shelby433694
Trousdale13934
Rutherford99822
Sumner81145
Bledsoe6071
Hamilton55214
Williamson51210
Tipton4263
Lake4090
Putnam3775
Robertson3711
Wilson3558
Out of TN3394
Knox3315
Bedford2654
Montgomery2403
Rhea1950
Hardeman1890
Madison1652
McMinn13413
Loudon1320
Cumberland1091
Fayette1072
Cheatham1040
Dickson1010
Macon1003
Bradley931
Blount823
Maury780
Unassigned750
Washington730
Sevier722
Coffee650
Wayne630
Sullivan612
Gibson611
Monroe572
Hickman540
Lauderdale511
Greene482
Dyer480
Franklin461
Anderson391
Marion361
DeKalb330
Hawkins312
Grundy311
Smith301
Haywood292
Henry290
Marshall281
Jefferson270
White270
Carroll271
Hamblen262
Lincoln260
Weakley260
Meigs250
Obion241
Lawrence240
Overton200
Cocke200
Carter191
Warren190
Morgan170
Cannon170
Campbell171
Jackson170
Crockett151
Roane150
Johnson150
Polk140
Perry130
McNairy120
Henderson120
Chester120
Giles120
Humphreys121
Hardin112
Scott110
Sequatchie100
Fentress100
Stewart90
Claiborne80
Houston70
Benton71
Clay70
Grainger60
Decatur50
Van Buren40
Union40
Lewis30
Moore30
Pickett30
Unicoi30
Hancock10

 

 

Community Events