The U.S. government will now run out of cash in early March, thanks to the GOP tax law, the CBO says
Congress will have to the raise the debt ceiling in the first half of March, weeks earlier than forecast, or the federal government will run out of cash, the Congressional Budget Office said Wednesday. The CBO attributed the shortened deadline to the tax overhaul Republicans passed in late 2017, which will lower tax receipts by $10 billion to $15 billion a month starting in February. In all, the U.S. will take in $136 billion less tax revenue in 2018 under the new tax law, the nonpartisan congressional Joint Committee on Taxation estimates.
The Treasury Department has been taking emergency measures to keep the U.S. solvent since the debt limit was suspended Dec. 8, but if Congress doesn't raise the federal borrowing limit in early March, "the government would be unable to pay its obligations fully, and it would delay making payments for its activities, default on its debt obligations, or both," the CBO warned. The federal government ran a $23 billion deficit in December and a $666 billion deficit for all of 2017, the biggest shortfall since 2013.
Congress hates raising the debt ceiling but has never failed to do so, brinkmanship notwithstanding. Lawmakers also have to pass a spending bill by Feb. 8 to keep the government open, and deal with the immigration status of DREAMers before President Trump's March deadline. It's possible all these items will be rolled up into a big, must-pass package, The Washington Post notes, though House conservatives would balk "and it's unclear what political coalition will form this time to help raise the borrowing limit."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
7 beautiful towns to visit in Switzerland during the holidays
The Week Recommends Find bliss in these charming Swiss locales that blend the traditional with the modern
By Catherine Garcia, The Week US Published
-
The Week contest: Werewolf bill
Puzzles and Quizzes
By The Week US Published
-
'This needs to be a bigger deal'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
By Peter Weber, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published
-
Ports reopen after dockworkers halt strike
Speed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
By Peter Weber, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published