A national taxpayer advocacy group is calling on President Donald Trump and Congress to urgently address the increasing federal debt. The National Taxpayers Union has raised concerns about rising interest payments and long-term spending commitments that are placing significant strain on the federal budget. This appeal follows a report from the Congressional Budget Office (CBO), which projects that federal debt held by the public could reach a startling 120% of gross domestic product (GDP) by 2036.
The CBO estimates that the federal government will need to borrow approximately $26 trillion between late 2025 and 2036, pushing public debt to around $56 trillion. Currently, federal debt stands at about 101% of GDP, with projections indicating a steady increase over the next decade.
In a statement issued on March 15, 2024, NTU President Pete Sepp emphasized that the escalating debt burden is already affecting American citizens. “Paying for past borrowing is already increasing the cost of living for Americans today,” Sepp stated. He urged Congress and the President to act decisively to tackle these structural spending issues before the upcoming mid-term elections.
As public debt rises, so do interest payments, which the CBO warns could pose significant fiscal risks. Higher debt levels may limit lawmakers’ ability to respond to economic downturns or emergencies. The report also highlighted that the anticipated debt-to-GDP ratio will be the highest in American history, significantly exceeding the 50-year average of 51%.
Demographic trends contribute further pressure on the federal budget. As the Baby Boomer generation continues to retire, the number of Social Security beneficiaries is increasing alongside federal health care expenditures. Economic forecasts predict only modest growth, exacerbating the situation.
Sepp pointed out that the core issue lies in a long-term structural imbalance. “The challenge is not temporary spending spikes or short-term economic conditions,” he noted. “The yawning mismatch between long-term commitments and the resources available to finance them grows wider every year. The time to act is now.”
The National Taxpayers Union recently conducted a poll through Public Opinion Strategies, revealing that 89% of registered voters believe the country is facing an affordability crisis. Additionally, 88% of respondents expressed concern that the national debt of $37 trillion will ultimately affect them and their families. When asked how to reduce the debt, 54% favored cutting government spending.
“Americans await leadership to identify real and salient solutions to these spending problems,” Sepp stated. “They know we cannot afford to keep racking up debt on the nation’s credit card while making interest-only payments anymore.”
Economists and budget analysts continue to debate the sustainable level of federal debt. While some estimates suggest that risks increase as debt approaches 160% to 200% percent of GDP, the precise tipping point remains uncertain. Nevertheless, federal forecasts indicate continued growth in deficits and debt over the next decade, pressuring lawmakers to determine whether spending cuts, tax increases, or other fiscal reforms are necessary to stabilize the nation’s finances.
