Permanent Tax Cut Extension Leads to 250% Debt-to-GDP: CBO (1)

Permanently extending trillions of dollars of the GOP 2017 law’s expiring tax cuts would hike the national debt to more than double gross domestic product over the next three decades, a new budget scorekeeper report says, fueling the debate over and to what extent to pay for renewal.

Debt held by the public would reach 214% of GDP by 2054, assuming no other changes to fiscal policy or interest rates, shattering previous records for the US. Adding the additional borrowing costs would swell that figure to more than 250%, said the Congressional Budget Office, which didn’t account for resulting “macroeconomic ...