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The federal deficit keeps growing and the Congressional Budget Office has solutions

^{Published on 2024-12-16 06:20:38 - Fox Business}
 

• The nonpartisan Congressional Budget Office released a report analyzing 76 policy options for reducing the federal budget deficit, including spending cuts, entitlement and tax reforms.

The article from Fox Business discusses the growing federal deficit, which has reached $1.7 trillion in the first 11 months of fiscal year 2023, according to the Congressional Budget Office (CBO). The CBO has proposed several solutions to address this issue, including reducing discretionary spending, reforming mandatory spending programs like Social Security and Medicare, and increasing revenue through tax policy changes. The report highlights that while discretionary spending can be adjusted annually, mandatory spending, which constitutes a significant portion of the budget, requires legislative changes that are politically challenging. Additionally, the CBO suggests that economic growth could help reduce the deficit, but this would require a combination of fiscal policy adjustments and economic conditions favoring expansion. The article also notes the political difficulties in implementing these solutions, given the divided opinions on tax increases versus spending cuts.

Read the Full Fox Business Article at:
[ https://www.foxbusiness.com/politics/federal-deficit-keeps-growing-congressional-budget-office-has-solutions ]

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