The federal government deficit for the first 10 months of fiscal year 2019 exceeded the previous year’s total shortfall and set an all-time record for total spending.
This result came despite revenues into the nation’s coffers increasing by 3 percent, Bloomberg reported.
Unfortunately, during the same time period, spending grew by 8 percent.
According to the Treasury Department, the government took in approximately $2.860 trillion while spending a record $3.727 trillion, for a deficit of $867 billion from October 2018 through July 2019.
That 10-month tally is more than last year’s entire deficit of $779 billion.
Though the deficit has grown, overall income tax receipts — both for individuals and corporations — have increased.
Receipts from individual taxpayers are up 1 percent, while the total for corporations has risen 3 percent.
Additionally, the tariffs imposed on China and other nations by President Donald Trump have led to a doubling of customs receipts to the Treasury to $57 billion.
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The greatest source of revenue was individual income taxes, which netted $1.429 trillion so far this year.
The next was Social Security taxes at $1.043 trillion, followed by corporate income taxes at $171 billion.
Corporations also pay half of the Social Security taxes due for each of their employees.
Bloomberg reported that current deficits are caused by a combination of an aging population — placing a higher demand on Social Security and Medicare in particular — as well as the 2017 GOP tax cuts and an increase in defense and domestic discretionary spending.
Social Security is the largest outlay for the federal government at $868 billion for the first 10 months of this fiscal year.
The next highest expenditures are national defense at $568 billion; followed by Medicare, $540 billion; other health services like Medicaid at $482 billion; and income security payments, such as food stamps at $446 billion.
The net interest the federal government paid on the publicly held national debt is $343 billion.
In 2014, the Congressional Budget Office forecasted a return to high deficits in the years ahead, due to federal entitlement programs.
The CBO estimated an additional $7.6 trillion in deficits from 2015 to 2024, or an average of $760 billion per year.
The deficit in 2014 was $483 billion, meaning the CBO was anticipating a steep increase in revenue shortfalls over the decade, likely topping a trillion dollars per year.
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