With the latest report from the Congressional Budget Office (CBO) It appears that democrats and republicans alike are responsible for the 222 billion jump in the US Federal Deficit in the 11 months representing the 2018 fiscal year.
This upswing has caused several independent deficit hawks to scream that this is a republican created problem because of the Republican tax plan, but the CBO reported that the Republican corporate tax slashing coupled with a bipartisan agreement to raise spending are the main drivers of the surge in deficit spending.
The tax cuts were proposed as a plan to increase the wealth of the average American worker, but the CBO reported that employee payroll taxes and individuals taxes have actually increased year on year by $105.2 billion or 4%, while corporate tax receipts actually fell by 30% or $71.6 billion.
President Trump promised to eliminate the deficit in eight years, yet he hasn’t showed much concern for our nation’s skyrocketing debt under his watch and the CBO projects that the 2019 deficit will be over one trillion dollars and increase again in 2020. Meanwhile the Fed has acted swiftly to increase interest rates in expectation of rising inflation caused by this jump in deficit spending.
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US Government Waste Tags:
government spending, united states economy