The forecasts "show a worsening budget outlook and the first ominous signs of fiscal strain brought on by the baby boomers' retirement," it said.
"No one should be lulled into thinking that this is a good news report," Concord Coalition executive director Robert Bixby said. "To the contrary, it is further confirmation that fiscal policy is on a dangerous path. Even with a strong economy, annual deficits are likely to hover between US$400 billion and US$500 billion for the next five years. After that, the combination of tax-cut extensions and growing entitlement costs threatens an upward spiral of deficits and debt that cannot be sustained."
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