The Congressional Budget Office is warning that the President’s recently announced plan to forgive certain student loan debt could change its federal deficit projection. Specifically, a previous $1 trillion deficit projection for fiscal 2022 is now in doubt given that the student debt program will likely require significant outlays in September. On the other hand, total receipts are rising, thanks to withholding from higher wages and salaries (particularly among high-income workers) and increased collections of corporate income tax. At the start of September, total fiscal 2022 receipts were $4.4 trillion, up 23% from the same period in 2021. Withholding totaled $377 billion, up 15%.
Our Blog 