Tax Foundation: Fiscal Commission a Viable Solution to Debt Crisis? - The Tax Foundation
A long-standing argument has held that future obligations related to Social Security and, of course Medicare, represent the pathway to a fiscal debt calamity. With net interest payments on the U.S. national debt exceeding $1.1 trillion for fiscal year 2026 and a total debt level exceeding $40 trillion, the role these two “entitlement” programs play in the debt picture is substantial.
In the case of Social Security, of course, most economists seem to understand that the current level of borrowing to meet benefit obligations is a matter of the U.S. government repaying the loans made to Social Security’s trust funds during the periods the program ran surpluses. The tax revenue collected during the surplus periods was used to fund other programs having nothing to do with Social Security, with the trust funds credited with IOUs that are now being redeemed to pay scheduled benefits.
Suffice it to say, the looming debt crisis caused by the years of deficit financing is a pretty big deal for the nation. In recognition of the growing problem, last year Rep. Bill Huizenga (R-MI-4) authored H.R.3289 - Fiscal Commission Act to establish a commission on fiscal responsibility and reform. The Tax Foundation, in its current Weekly Newsletter, added support to this bill with an article titled “Why the US Needs a Fiscal Commission to Help Solve the Debt Crisis. Read the article here, and check out the details on H.R. 3289 here.
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