A recent report from the Congressional Budget Office (CBO) says that the improving economy and recently enacted tax increases will bring down the federal deficit over the next few years.
The CBO says that if laws are left unchanged, US debt will compose 77% of gross domestic product (GDP) by the end of the decade.
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If scheduled spending cuts are diluted or more tax breaks are extended, the debt will be higher.
The director of a non-partisan agency that advises Congress on budget matters has highlighted the risks of failing to address the debt situation.
Increased debt to GDP ratios would increase costs and heighten risks to a level only seen around the World War II years.
Simultaneously, taking action to reduce the debt may also trim government services. The CBO report showed that the debt has been reduced as a portion of the economy to almost half of what it was in 2009.