Federal budget deficits are set to increase rapidly this year and over the next four years….
Congressional Budget Office
The partial government shutdown over border wall funding is just one more distraction from the real issues that will worry the next generation of American voters. After the 2017 tax cuts and spending increases, the nonpartisan Congressional Budget Office estimates that the 2019 budget deficit will be $981 billion–$5 billion for the wall is only 0.5% of the deficit and only 0.1% of the total budget.
CBO estimates that if we do nothing different with taxes and expenditures, federal debt will balloon from $21 trillion today to $34 trillion by 2028. At their projected 3.4% interest rate, U.S. tax payers will have to come up with $1.2 trillion in interest each year–money that might better be spent on education or infrastructure. That is the real issue we should be worried about.
Issues like the wall dominate our attention like a barking dog at the door while the house is burning down. If we really cared about the long-term health of the country, Democrats might say, “Sure we’ll give you $5 billion for the wall in exchange for tax and budget legislation that gets our deficits under control.” Having a Congress split between Republicans and Democrats is the best time to get the right balance between spending cuts and tax increases.