US budget deficit jumps above $1 trillion for the first time in more than 6 years
AP Photo/Jacquelyn Martin
- The gap between federal expenditures and receipts grew 34% from a year earlier to $134 billion in October.
- Lawmakers typically have more tools to reduce the national debt when the economy is in a solid place.
- But recent legislation, including sweeping tax cuts that took effect last year, has continued to take it the opposite direction.
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The US budget deficit continued to swell at the start of the fiscal year, as government spending outpaced revenue despite solid economic growth.
Lawmakers typically have more tools to reduce the national debt when the economy is in a solid place. But recent legislation, including sweeping tax cuts that took effect last year, has continued to take it the opposite direction.In June, a Republican congressman who helped craft the $1.5 trillion package walked back the longstanding claim that a tax cut would pay for itself. The GOP had argued that lower taxes would lift the economy enough to make up for the loss in federal revenue.A bipartisan budget agreement President Donald Trump signed into law in August lifted the debt ceiling and increased spending by about $320 billion. That could amount to a $1.7 trillion increase in projected debt levels over the next decade, according to estimates from the Committee for a Responsible Federal Budget.
With growth set to slow in the coming months, deficit projections are poised to increase further.
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