It is only August and the United States budget deficit for the fiscal 2019 year has already passed the full-year figure from last year. According to a new report from the United States Department of the Treasury, the spending-revenue gap increased to $866.8 billion with two months still left to go in the fiscal year. That is a bump of 27 percent from the same period the year prior.
Now, it should probably be noted that July is consistently a deficit month—having cataloged such in 63 out of the past 65 fiscal years. And this is, of course, due to the fact that major corporate and/or individual tax payments are due, this month. But while revenue has increased 3 percent on the year, so far, spending jumped 8 percent, from last year’s $779 billion shortfall. Expenditures, for the year so far, have been recorded at $3.73 trillion.
Specifically, US President Donald Trump’s new administrative tariffs [on China] have nearly doubled customs duties, now at $57 billion.
All this in mind, the annual US budget deficit is expected continue its climb. As a matter of fact, the nonpartisan Congressional Budget Office expects the US deficit will exceed $1 trillion, starting in 2022.
It is important to keep in mind that the fiscal year deficit (so far) reached $866.8 after more than one-and-a-half years after the Trump administration enacted a $1.5 trillion tax cut: a move which he adamantly claimed would quickly pay for itself. Sure enough, the tax cut definitely lowered the amount of money corporations had to pay—down to 21 percent, from 36 percent—this year. Of course, that revenue had to be made up somewhere so tax receipts jumped more than 3 percent with individual income tax receipts (for the average tax payer) up just north of 1 percent.
At this point, last year, the deficit was $684 billion (on its way to the total $779 billion, listed above).