The Congressional Budget Office says it will only take until the end of the 2018 fiscal year to reach a $1 trillion U.S. spending deficit. The nonpartisan agency notes that President Trump managed to grow the deficit he inherited by $222 billion in just a single year, reaching a total of $895 billion.
Based on the CBO’s numbers, Speaker Paul Ryan and his cohorts are now responsible for adding one-quarter of the overall U.S. deficit in JUST ONE YEAR.
What’s the cause of the sudden spike? The GOP has risen government revenues by just one percent while increasing spending by seven percent.
The CBO notes that part of the offset was caused by corporate receipts falling by $71 billion or 30 percent on the back of the new lower corporate tax rate and the ability to deduct equipment purchases.
An increasing U.S. deficit comes at a time when top Republican leaders including Treasury Sec. Steven Mnuchin and former National Economic Council Director Gary Cohn have promised that Trump’s tax plan would “pay for itself.”
“With a booming economy, full employment, a soaring stock market and record asset values, we should be shrinking the deficit, not growing it,” Mitt Romney wrote on his campaign website Monday. Romney took aim at his fellow conservatives, blaming them for remaining silent over President Trump’s economic maneuvers.
Further, a group of Republicans this week suggested another $646 billion in tax cuts with that number potentially growing to $2 trillion over the next decade.
To be fair, not all of the deficit increase is the fault of GOP leadership. As more baby boomers head into retirement the cost of Medicare increased by $22 billion (or 4 percent) and “Medicaid outlays rose by $13 billion (or 4 percent), in part because more new enrollees were added through expansions of coverage authorized by the Affordable Care Act,” the CBO notes.
Now the ball is in the Republicans’ court. During Obama’s eight-year tenure they decried the deficit which was largely led by government spending and economic recovery efforts. Under Trump they have abandoned that battle cry and have expressed little to no interest in reigning in government spending, instead, increasing that spending at an alarming rate.