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Total debt to rise higher than GDP in 2011

June 8, 2011 at 3:46 PM   |   Comments

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WASHINGTON, June 8 (UPI) -- A tax break and a slower economy are pushing U.S. debt higher than the size of the U.S. economy quicker than previously thought, the Treasury Department said.

The Treasury said in 2010 the debt would not exceed the gross domestic product until 2014, CNNMoney reported Wednesday.

Two fundamentals have changed, however. The department has lowered its expectation of economic growth by $219 billion, and Congress, along with President Barack Obama, cut a deal in December that extended tax breaks that took away an estimated $858 billion in revenue over the next 10 years.

Those two changes put the total debt on track to exceed the size of the nation's economy by the end of the year for the first time since World War II.

© 2011 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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