Thread by @BudgetHawks

🚨NEW🚨 Under alternative, fiscally-irresponsible scenarios based on @USCBO's baseline – including likely policy extensions and more deficit-financed actions – #deficits could surpass $𝟯 𝘁𝗿𝗶𝗹𝗹𝗶𝗼𝗻 and #debt could reach 𝟭𝟮𝟱% of GDP by 2032.

➡️crfb.org/blogs/debt-cou….

➡️Last week, @USCBO projected that debt will reach a record 110% of GDP and deficits will reach $2.3 trillion by 2032.⤵️

But the baseline is based on current law, and ignores future legislation, administrative actions and temporary policy extensions.

https://twitter.com/BudgetHawks/status/1529536568926543872?s=20&t=-FqXEBvmO2AfiBPHuK_IcA

➡️We've mapped debt, deficits & interest payments based on two alternative, more realistic scenarios:
➤With extensions of temporary policies & with spending growing faster than inflation;
➤With the above extensions, plus other debt-financed legislative & administrative actions.

🚨Under both scenarios, debt and deficits would soar beyond those projected by @USCBO in its baseline –
➤With extensions: $3.1 trillion added to deficits, and 118% debt-GDP.
➤With extensions and other actions: $5.5 trillion added to deficits, and 125% debt-GDP.

📈These scenarios would also push interest payments to record levels. Interest spending will rise significantly from 1.6% of GDP in 2022 to a record 3.3% in 2032 under current law.
➤With extensions: 3.5%
➤With extensions and additional actions: 3.6%

➡️Ultimately, debt could rise much higher – up to 125% of GDP under our estimates – if policymakers extend several costly temporary policies + take on several other deficit-increasing policies.

Given our bleak fiscal situation, we can't afford more irresponsible actions.