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US-POLITICS-TRUMP-INAUGURATION-SWEARING IN The federal government’s budget is in such disarray that balancing the books would require a 30% spending cut or a 40% increase in taxes, a recent study found.
The budget deficit, which reflects the difference between federal revenues and expenditures in a year, approached $1.4 trillion in 2022, according to data from the Office of Management and Budget. The national debt is currently nearing $31.5 trillion even as maintenance costs soar due to a higher interest rate environment. An analysis from economists at the University of Pennsylvania’s Wharton School found that American fiscal policy is in “permanent imbalance as current debt plus projected future spending outstrips future tax revenue,” demanding a substantial decrease in expenditures or a substantial rise in revenues.
“Just like all individuals and businesses, the federal government is subject to a budget constraint: it must fund all expenditures, current and future, from its tax and non-tax […]
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