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As a result, the combination of both pieces of legislation will make the long-term fiscal picture even worse.

And this does not consider the harm that the tax increases will do to the recessionary economy. Meanwhile, the $280 billion in new spending and tax subsidies Congress just authorized in the Chips and Science Act will nearly cancel out the reported $300 billion in deficit reduction that supporters say will be delivered by the Inflation Reduction Act.

The CBO expects that even with the expiration of much of the Tax Cuts and Jobs Act (TCJA) in 2026 and significant new revenues generated by real bracket creep, the gulf between tax revenues and outlays will reach over 10 percent of GDP by 2052. These projections should give lawmakers pause as they consider creating expensive new programs to subsidize the semiconductor industry, expand health-care benefits, and fund new programs to address climate change. Indeed, the Congressional Budget Office (CBO) expects federal spending to reach 30 percent of GDP by 2052, a level most associated with European nations. The CBO long-term budget outlook report shows widening deficits over the next three decades as both federal spending and tax revenues are expected to rise above historic levels, with spending growth far outpacing the modest growth in tax revenues. As the reality of a second quarter of negative economic growth settles in Washington, the Congressional Budget Office (CBO) released its own sobering report on the government’s long-term finances.