Highlights of the CBO's Budget and Economic Outlook

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According to the Congressional Budget Office, the US budget deficit is expected to grow over the next few years due to tax cuts that were approved back in December by Republicans in Congress and POTUS Donald Trump. An increase from $665 billion in fiscal 2017.

According to the report, the tax law would cost the government $2.3 trillion in revenues, but economic growth would offset that figure by about $461 billion.

The nonpartisan legislative office said the tax cuts combined with the just passed spending bill will push the budget deficit to $804 billion this year and just under $1 trillion in 2019 before peaking at 5.4 percent of gross domestic product in 2022.

Republicans controlling Washington have largely lost interest in taking on the deficit.

President Donald Trump and Congressional Republicans' tax cuts and spending increases will have serious impacts on the US deficit.

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But the CBO suggests the administration's promise that the tax cuts would pay for themselves seems out of reach. This change reflects the net effect of substantial estimated reductions in tax collection (nearly $1.7 trillion) due to policy changes, and a significant increase in tax collections (about $1 trillion) due to higher projected economic growth. Those surpluses turned to deficits after tax cuts under President George W. Bush, as well as sharp increases in military spending for the wars in Afghanistan and Iraq. But in a sign that Republicans are growing concerned about the political liability of soaring deficits, the House will vote Thursday on a constitutional amendment to require balanced budgets.

A copy of the $1.3 trillion spending bill is stacked on a table in the Diplomatic Room of the White House in Washington, March 23, 2018. That forecast will likely become offical-or as official as these things can ever be-later this week, when the Congressional Budget Office (CBO) releases its annual outlook for revenue and spending.

"That is unacceptable", said Sen. That deal paved the way for Congress to pass a $1.3 trillion spending bill last month.

But, as deficits, inflation and interest rates rise, GDP growth will slow from 2020 to 2026, the CBO said. This will mean the government will be forced to pay even more to finance the more than $14 trillion in Treasury debt held by investors. If the United States recovery becomes a slow down, then debt and deficit will rise even faster.

The report does say the USA gross domestic product is likely to grow faster than previously thought this year. Faster growth is expected next year, as well. It warns that interest rates on government borrowing will spike, with the benchmark 10-year Treasury note, now yielding 2.8 percent, will average a 3.0 percent interest rate this year and 3.7 percent next year.