At the National Tax Association Spring Symposium, PWBM participated in a roundtable with other economic modelers. All modelers showed the results of cutting Social Security benefits by one-third in 2031. All models found that even with a benefit cut, by mid-century the U.S. still has a sizable debt-to-GDP ratio.
To finance government spending above tax revenues, the federal government issues debt. According to USAFacts, in 2015 the federal government paid more than $220 billion in interest on this debt. Moreover, interest on the federal debt is growing larger, and it is becoming an increasingly important part of PWBM’s long-term budget projections. To make more accurate projections of interest paid on the federal debt, PWBM will begin projecting the maturity structure of federal debt.