Sep 10, 2019

Federal budget deficit tops $1 trillion: CBO

Photo: Joe Sohm/Visions of America/Universal Images Group via Getty Images


The federal deficit exceeded $1 trillion in the first 11 months of fiscal year 2019, the Congressional Budget Office (CBO) said in a report published Monday.

The big picture: The deficit is $168 billion more than for the same period in the previous fiscal year. The growing deficit has been driven by mandatory spending in areas including Social Security and Medicare, President Trump's tax cuts, and bipartisan agreements to increase spending in areas such as defense — which contributed toward overall federal government spending increasing 7%.

  • The current deficit of $1.068 trillion is expected to be reduced when quarterly tax payments are paid in September.
  • Trump's tariffs on imported goods from China contributed toward the federal government’s revenue increasing 3% in the first 11 months of the 2019 fiscal year, along with other sources such as individual income and payroll taxes and corporate taxes.

Between the lines: Per Axios' Jim VandeHei, Trump "promised in a 2016 interview, with the WashPost's Bob Woodward and Robert Costa, to wipe out the national debt in 8 years. Instead, he's increased the deficit and inflated the debt by trillions."

Go deeper: Chart: How the U.S. budget deficit has fluctuated since the 1980s

Go deeper

U.S. trade deficit grows to $54.9 billion in August

The U.S. trade deficit grew to $54.9 billion in August, jumping for the first time in 3 months due to increased imports, reports the AP from Commerce Department data.

Why it matters: Though it had fallen in June and July, the country's overall trade deficit is still up for the year as a result of President Trump's ongoing trade war with China.

Go deeperArrowOct 4, 2019

Scoop: Bernie Sanders one-ups Warren with his own wealth tax

Photo: Joshua Lott/Getty Images

Sen. Bernie Sanders has released a wealth tax that's even more aggressive than Sen. Elizabeth Warren's "ultra-millionaire tax." Axios first reported Sanders' proposal.

Why it matters: Sanders keeps trying to remind voters that he's the original when it comes to progressive policy in the 2020 field, but he's being eclipsed at every turn by the surging Warren. The Vermont senator has proposed massive spending — $16 trillion on climate alone — and so has to show a little revenue to add credibility to his proposals.

Go deeperArrowUpdated Sep 24, 2019

The overall tax rate for the richest 400 households last year was 23%

Hudson Yards neighborhood in Manhattan. Photo: Spencer Platt/Getty Images

The 400 wealthiest Americans last year paid a lower total tax rate for federal, state and local taxes than any other income group for the first time on record, according to the New York Times.

Why it matters: Tax rate for the wealthy has steadily dropped since the 1950s and 1960s, when the wealthy paid vastly higher tax rates than the middle class or poor.

Go deeperArrowOct 7, 2019