Former Treasury Secretary Summers: U.S. Fiscal Deficit a ‘More Serious Problem Than Ever Before,'

Larry Summers warned that the U.S. faces an unprecedented economic challenge with a federal budget deficit of $1.7 trillion, or 5.3% of GDP, significantly higher than the 40-year average. He emphasized the criticality of tax law enforcement, especially when fiscal deficit is skyrocketing. The deficit issue is graver than ever, and despite support for the Inflation Reduction Act aimed at addressing this through IRS funding increases, there’s concern that proposed cuts in IRS funding could exacerbate the deficit situation further.