U.S. budget deficit surpasses $1 trillion as government spending climbs

  
Via:  tig  •  one month ago  •  24 comments

U.S. budget deficit surpasses $1 trillion as government spending climbs
The government budget deficit climbed $169 billion to $1.07 trillion in the first 11 months of this budget year ...

S E E D E D   C O N T E N T


The U.S. government's budget deficit for the 2019 fiscal year surpassed the $1 trillion benchmark in August, the highest level in seven years, the Treasury Department said Thursday. 

The government budget deficit climbed $169 billion to $1.07 trillion in the first 11 months of this budget year, as   government spending this year outpaced tax collections   in areas such as Social Security, Medicare, defense and interest payments on the national debt. With just one month left in the budget year, the deficit is up 18.8% over the year-ago period, according to the Treasury Department. 

Budget experts projected a surplus for September, which would push the total 2019 deficit down slightly below the $1 trillion mark for the fiscal 2019 year. The Congressional Budget Office is forecasting a deficit this year of $960 billion, compared to $779 billion last year.

Longer term, the CBO in August forecast that the annual deficit would again top $1 trillion in 2020 and remain above that  threshold over the next decade

While the deficit has risen, the U.S. economy also has continued to expand, swelling from roughly $16 trillion in 2012 to more than $21 trillion as of the second quarter of this year.

Higher government spending 


The government has recorded trillion-dollar-plus deficits in only one other period — between 2009 through 2012, when federal spending shot up to cope with the worst financial crisis since the 1930s.

The higher deficits currently reflect higher government spending, reflecting two budget agreements in 2018 and this year between the Trump administration and Congress that added billions of dollars in extra spending for the military and domestic programs.

In addition, Social Security and Medicare payments are surging as millions of baby boomers retire. Added to the increased spending is the impact of the $1.5 trillion tax cut President Donald Trump pushed through Congress in 2017, reducing individual and corporate tax rates.

For this year, revenues are up 3.4%, but spending is up by 7%, nearly double the increase in revenues. Individual tax revenues have risen by 2% in the first 11 months of this year compared to the same period in 2018 while corporate tax revenues are down 2%.

Bucking this slow growth are tariffs which are up $28 billion or 73% over last year, reflecting the higher tariffs Trump has imposed on China and other nations as part of his get-tough trade battles.

On the spending side, the government so far this year has spent $379.1 billion on interest payments on the debt, up $47 billion from a year ago, reflecting the growing size of the national debt.

Commenting on the new report, Michael Peterson, head of the Peterson Foundation, said, "Absent more responsible budgets, the deficit and interest costs will continue to grow rapidly, diminishing America's future."

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TᵢG
1  seeder  TᵢG    one month ago

When I consider irresponsible politicians the first thing that comes to my mind is the debt;  next to that is the deficit.   This is so beyond irresponsible I am at a loss to offer an appropriate adjective.

 
 
 
al Jizzerror
1.1  al Jizzerror  replied to  TᵢG @1    one month ago
I am at a loss to offer an appropriate adjective.

Adjective smadjective.

What's worse?

1. Calling the president a "motherfucker"

or

2.  Calling a motherfucker "President"?
 
 
 
igknorantzrulz
1.2  igknorantzrulz  replied to  TᵢG @1    one month ago
irresponsible politicians

Don't worry a pound.

As soon as Mexico pays for that unnecessary wall he promised his suckers, he'll have them take care of that minor oversight, also called a LIE, about balancing the budget.

That "middle class" less, tax cut for the wealthiest is doing just fine for the ones who needed it most least, the divine

Intervention is not going to be coming from anywhere,

till people realize the tire d, isn't despair , and what Trump spews 

is just more hot air, cause he only ever did care, 

about no one, in the middle class, as he has always been, ONE way fare.

 
 
 
WallyW
1.3  WallyW  replied to  TᵢG @1    one month ago

And  the Dems  want  to make it worse with free everything to everyone.

The easy and simple solution is to raise taxes on the rich.

 
 
 
MrFrost
1.3.1  MrFrost  replied to  WallyW @1.3    one month ago
And  the Dems  want  to make it worse with free everything to everyone.

I went to the phone store and asked for a free phone. They said no. I went to an apartment complex and asked for free housing, they said no. I went to the grocery store and asked for free food. Nope. I went to the college and asked to get a degree...for free. Again...no. Not sure where all this free stuff is, but I can't find it. 

Maybe if my house is blown away by a hurricane for the 5th time, like the people in Florida, I can get free money to rebuild it? Yea, that's the ticket. 

So if I want free shit, I have to move to a red state... Good to know! 

Also, Wally? This fiscal year awas approved by our republican congress LAST year. 

The easy and simple solution is to raise taxes on the rich.

Wonderful plan, too bad your buddy trump and ryan gave tax breaks to the rich...

512

 
 
 
al Jizzerror
2  al Jizzerror    one month ago

800

Trump actually promised to eliminate the entire NATIONAL DEBT.

So I guess a trillion dollar DEFICIT is his way to achieve debt reduction.

Sounds legit, doesn't it?

800

 
 
 
The Magic Eight Ball
3  The Magic Eight Ball    one month ago

yepp.. the globalists in both parties have been screwing us over big time. the only thing more expensive than that is undoing 60+ yrs of traitors running our govt.    

there is no reason we should be paying interest on our money.  fuk the federal reserve. the sooner we end that bs the better.

 
 
 
igknorantzrulz
3.1  igknorantzrulz  replied to  The Magic Eight Ball @3    one month ago
yepp.. the globalists in both parties have been screwing us over big time

seems one party, is a torque head, while the other, stripped

 
 
 
al Jizzerror
3.2  al Jizzerror  replied to  The Magic Eight Ball @3    one month ago
there is no reason we should be paying interest on our money.

How is the government going to borrow money if they don't pay interest on the fucking bonds?

512

 
 
 
Dean Moriarty
3.2.1  Dean Moriarty  replied to  al Jizzerror @3.2    one month ago

Yes I think Trump should not sign on to anymore of the runaway spending congress sends back to him after they reject his proposed budget cuts. He should just let the government shut down rather than rubber stamping their bills. 

“The Trump administration released its 2020 budget request on Monday , proposing major cuts to federal government spending. While the cuts are unlikely to become reality — Congress has rejected many of Trump’s previous requests”

https://www.washingtonpost.com/graphics/2019/politics/trump-budget-2020/

 
 
 
WallyW
3.2.2  WallyW  replied to  al Jizzerror @3.2    one month ago

It's  the Dems who refuse to cut spending or reform entitlement programs

 
 
 
MrFrost
3.2.3  MrFrost  replied to  WallyW @3.2.2    one month ago

It's  the Dems who refuse to cut spending or reform entitlement programs

Wally, it was a republican congress for the first two years trump was in office. Nothing to do with the dems. 

 
 
 
Nerm_L
4  Nerm_L    one month ago

The seeded article points out that Federal tax revenue increased by 3.4 pct.  Kinda difficult to argue that the deficit is driven by tax cuts when the government is taking in more money.

And Social Security cannot increase the deficit because the program is prohibited from paying benefits from general revenue.  SoSec is still paying for itself and still has a large surplus in the trust fund.  So, blaming Social Security for the deficits is, at best, a lie.

Everything really does show that the deficits are caused by spending too much rather than taxing too little.  Politicians have been promising to spend money now and raise taxes later.  That's putting the cart ahead of the jackass.

 
 
 
al Jizzerror
5  al Jizzerror    one month ago

Reagan said he would use "trickle down economics" to balance the budget by 1983.  Instead he set the record for the highest deficit in history.  

Daddy Bush ran an even higher deficit and broke Reagan's record.

Bill Clinton set the record for the highest budget surplus  in U.S. history.

DuhBya broke his daddy's record and ran an even higher deficit.

Obama managed to reduce GW's deficit.

Trump is on his way to running a new record high deficit .

800

 
 
 
Greg Jones
5.1  Greg Jones  replied to  al Jizzerror @5    one month ago

The Democrats did nothing of the sort.

Tell us exactly how they got those alleged numbers

Cut programs, raised taxes, how??

 
 
 
al Jizzerror
5.1.1  al Jizzerror  replied to  Greg Jones @5.1    one month ago
Tell us exactly how they got those alleged numbers

512

 
 
 
Greg Jones
5.1.2  Greg Jones  replied to  al Jizzerror @5.1.1    one month ago

Clinton had a "projected" surplus that never occurred.

Look it up.

 
 
 
Dean Moriarty
5.1.3  Dean Moriarty  replied to  al Jizzerror @5.1.1    one month ago

Yes the numbers Pelosi is sending to Trump for approval do not make for a balanced budget. Do you think he should have rejected Pelosi’s spending deal and go for the shutdown? I think he should have told her to take a hike and come back when she has a balanced budget for him to sign. 

https://m.washingtontimes.com/news/2019/aug/21/trump-pelosi-budget-deal-sends-deficit-soaring/

 
 
 
al Jizzerror
5.1.4  al Jizzerror  replied to  Dean Moriarty @5.1.3    one month ago
Yes the numbers Pelosi is sending to Trump for approval do not make for a balanced budget.

Trump submitted a budget with a huge deficit.

Donald Trump’s record $4.75trn budget

PRESIDENTIAL BUDGETS are odd things. They are a list of priorities briefly incarnated in numerical form, dissected for a day and then summarily discarded by Congress, which goes on to pass the budget it always intended to. The exercise is one of showmanship. President Donald Trump is certainly not a man who busies himself with details; he understands the importance of signalling. His proposed budget for the 2020 fiscal year, released on March 11th, signals a few things. He has dropped the Republican pretence of caring about deficits altogether, he still wishes to slash the budgets for regulatory agencies and safety-net programmes, and he is clamouring for another fight over his border wall.

https://www.economist.com/democracy-in-america/2019/03/11/donald-trumps-record-475trn-budget
 
 
 
MrFrost
5.1.5  MrFrost  replied to  Greg Jones @5.1.2    one month ago
Clinton had a "projected" surplus that never occurred.

Yea, it kinda did. 

Scroll down to 2000, what does it say? 

https://www.thebalance.com/us-deficit-by-year-3306306

 
 
 
al Jizzerror
5.1.6  al Jizzerror  replied to  MrFrost @5.1.5    one month ago
https://www.thebalance.com/us-deficit-by-year-3306306

The table shows a surpluses in 1998 ($69 Billion), 1999 ($126 Billion), 2000 ($236 Billion) and 2001($128 Billion).

In 2002 GW's trickle down ended the budget surpluses ( $158 Billion deficit ).

512

 
 
 
MUVA
6  MUVA    one month ago

Yes we spend to much money as a country time to stop feeding the beast a hiring freeze and a cut government work force for starters.Every new hire is a potential pension that  later burdens tax payers. 

 
 
 
lib50
6.1  lib50  replied to  MUVA @6    one month ago

The solution is clear.  Cut military spending, they've obviously got too much money if it can be so easily diverted for a wasteful vanity wall.  Then we can repeal the grossly unfair tax cut to the top. Deficits immediately improve.  The gop will NEVER get American approval for SS or Medicare cuts. And they've starved the beast as much as they can before it dies. People will get pissed.

 
 
 
Ronin2
6.1.1  Ronin2  replied to  lib50 @6.1    one month ago
Cut military spending, they've obviously got too much money if it can be so easily diverted for a wasteful vanity wall.

All for it. They can start with the majority of overseas military bases. Of course our so called allies will scream that we are leaving them vulnerable; but it is about time they protected themselves.  Next we can stop the bullshit wars, proxy wars, extra judicial drone killings, and financial support for regime changes. Cap it off with making our NATO partners honor their obligations; and not just play lip service.

Then we can repeal the grossly unfair tax cut to the top.

But keep the tax cuts for the poor and middle class, like we did with the Bush tax cuts right? I will say the same thing about the Trump tax cuts that I said about the Bush tax cuts; if they are bad for the rich then they are bad for everyone. End all of them or none of them. You cannot increase the number of takers and decrease the number of payers into the system. 

And they've starved the beast as much as they can before it dies.

You think the government is starving? Hard to tell as the government has zero problem spending money. There are no actual spending cuts; the increase is not as much as what was projected on budgets. That is not a cut by any stretch of the imagination. Of course Congress can enact emergency spending bills to cover any short falls, and sign new laws with increased spending to cover their costs. Presidents from either party don't seem to have any problem signing those.

People will get pissed.

What the hell else is new? People will always be pissed about something.

 
 
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