"In this year's assessment, the CBO report shows that a plausible current policy baseline would project federal debt held by the public to climb by $8.4 trillion over the next decade to 83% of gross domestic product (GDP). The debt burden worsens in the decade after that, as demographics and health care cost inflation continue to drive up federal spending in health care and retirement programs. Without reining in spending and raising new revenue through tax reform, public debt will eventually begin to crowd out the private investment our economy needs.
"The president and Congress missed several opportunities in the last two years to make real progress toward stabilizing our national debt as a percentage of GDP: the president's Fiscal Commission recommendations; our own Domenici-Rivlin Debt Reduction Task Force proposals of 2010 and 2012; the so-called Biden-Cantor talks; other plans proposed by serious budget experts; and most recently, failure to use the opportunity offered by negotiations surrounding the 'fiscal cliff' to achieve any plan that fundamentally alters the debt dilemma.
"We hope that CBO's estimates today prompt more serious responses by federal elected officials during 2013."
SOURCE Bipartisan Policy Center