Two major factors are behind the decline in the budget deficit this year, each of them one-off events that reflect the challenge for lawmakers in trying to close the growing gap between tax revenues and spending.
Second, tax revenues are expected to increase because of better returns on financial investments and the collection of taxes from last year that the government postponed because of natural disasters.
Over the next decade, the cumulative budget deficits will be 7% smaller than the nonpartisan CBO forecast last year.
For instance, this time last year, the office projected the unemployment rate would jump to 4.7% in 2023, while the current unemployment rate is 3.7%.
The CBO anticipates that the unemployment rate will hit 4.4% at the end of 2024.
Persons:
Joe Biden, Joe Biden’s, Donald Trump’s, Trump, Jerome Powell
Organizations:
WASHINGTON, Congressional, Congressional Republicans, Social Security, CBO, Republicans