Federal Tax, Tax

Next Decade U.S. Economic Outlook

What’s the U.S. economic outlook for the next decade? The Congressional Budget Office (CBO) just released a report that projects the federal deficit in 2020 will be 4.6% of gross domestic product (GDP) and will rise to 5.4% of GDP by 2030. “Because of the large deficits, federal debt held by the public is projected to grow, from 81% of GDP in 2020 to 98% in 2030 (its highest percentage since 1946),” the report said. As a percentage of GDP, revenues are expected to rise to 16.4% in 2020, and over the next decade, reach 18% of GDP, mainly from increased revenues from individual income taxes, but also from corporate income taxes, estate and gift taxes. Here’s the report. © 2020

Congress of the United States Congressional Budget Office,“The Budget and Economic Outlook: 2020 to 2030,” https://www.cbo.gov/system/files/2020-01/56020-CBO-Outlook.pdf.