From sharply rising debt to soaring interest payments, the warning signs are clear: without a commitment to fiscally responsible tax reform, the United States faces a dangerously unsustainable path.
New alarm bells have gone off in just the last few days:
- Moody’s warned that the nation’s fiscal strength “has deteriorated further.” Interest payments are now the fastest-growing part of the federal budget. “Higher interest rates have markedly weakened debt affordability, accelerating the decline in fiscal strength,” the analysts wrote.
- In response to a request from Rep. Dave Schweikert (R‑AZ), the Congressional Budget Office (CBO) now projects that making the Tax Cuts and Jobs Act permanent without offsets would push the national debt to 214% of GDP by 2054. This is nearly triple today’s level. If interest rates are just one point higher than expected, that number could climb to 250%.
- New estimates from CBO and the Bipartisan Policy Center show that the U.S. could hit the “X‑date” — the moment the government can no longer pay its bills — as soon as this summer. The government’s fiscal room to maneuver is rapidly narrowing.
Yet by adopting a ‘current policy baseline,’ some lawmakers want to extend tax cuts without even acknowledging their cost or their impact on our fiscal trajectory. There is no budget baseline or accounting gimmick Congress can adopt to avoid this debate or these dire consequences. As former House Majority Leader Eric Cantor recently pointed out, “The bond markets are not going to let you hide this.”
Lawmakers have a historic opportunity to begin solving this problem: extend pro-growth tax relief and take meaningful steps to rein in the debt. Our plan to do both and achieve fiscally responsible tax reform outlines up to $4 trillion in savings for taxpayers.
