Revenues Are Up 6% After Trump Tax Cuts, So Why Is The Deficit Surging?

[corbe]

Revenues Are Up 6% After Trump Tax Cuts, So Why Is The Deficit Surging?
   
John Merline    May 16, 2019    ï„€

When Republicans passed the tax cut bill in 2017, Democrats charged that it would explode the deficit. And the latest Treasury monthly report on the government’s finances seems to verify that.

So far this fiscal year, which started last October, the federal government has racked up $531 billion in deficits. That compares with $385 billion over the same seven months the year before.

Worse, Treasury says the deficit is on track to top $1.1 trillion this year, up from $779 billion last year.

For the government to be running deficits this high — and climbing — while the economy is chugging along at a brisk pace and the country isn’t at war is virtually unprecedented.

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https://issuesinsights.com/2019/05/16/revenues-are-up-6-after-trump-tax-cuts-so-why-is-the-deficit-surging/

[ABX]

Even if you had flat spending, the way our debt is set up, the interest and liabilities are compounding on themselves. The increase in tax revenue is miniscule compared to the interest on the debt, not to mention we are piling on more spending at a faster rate than in the past.


There is very little to actually cheer about with the economy right now if you look past sitcom time scales.

[catfish1957]

Just one of many reasons why so many on our side have been duped into thinking DJT is a conservative.  I thought i saw somewhere that Trump's rate of national debt increases are matching or exceeding Obama's.

[ABX]

Just one of many reasons why so many on our side have been duped into thinking DJT is a conservative.  I thought i saw somewhere that Trump's rate of national debt increases are matching or exceeding Obama's.

Exceeding, by a big margin.

[catfish1957]

Exceeding, by a big margin.

Wow, Obama was just a piker as a free spending liberal.   

I don't understand why there isn't a serious effort to primary his ass.

[corbe]

   Cheer up fellas Trumps got almost 6 years left to eliminate the debt as he promised.

[Jazzhead]

The deficit is surging because spending is surging.   What is needed - and the sooner the better - is entitlement reform.   But the none of the Dems will mention the word,  and President Trump panders to seniors by declaring he won't cut SS or Medicare.   Meanwhile, the bill for my kids and grandkids keeps getting higher. 

[Sanguine]

The deficit is surging because spending is surging.   What is needed - and the sooner the better - is entitlement reform.   But the none of the Dems will mention the word,  and President Trump panders to seniors by declaring he won't cut SS or Medicare.   Meanwhile, the bill for my kids and grandkids keeps getting higher.

@Jazzhead, on this point we agree.  Unfortunately I think we're right. 

[Free Vulcan]

Social security and Medicare are starting to bite us on the butt.

[InHeavenThereIsNoBeer]

Exceeding, by a big margin.

I'm not buying that.  While the label says Dept of Treasury, the image is from WaPo.

According to Treasury, during that last two fiscal years of the 0 admin, the debt went up about $1.6T

https://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo5.htm

[catfish1957]

I'm not buying that.  While the label says Dept of Treasury, the image is from WaPo.

According to Treasury, during that last two fiscal years of the 0 admin, the debt went up about $1.6T

https://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo5.htm

Even at $1.6T, it is triple that of Obama's record.

[thackney]

Even at $1.6T, it is triple that of Obama's record.

Click on that treasury link.  During Obama time the debt went up over $10 trillion .

[InHeavenThereIsNoBeer]

Even at $1.6T, it is triple that of Obama's record.

The 1.6 WAS during 0.  It was not the 0.5 the WaPo graph claimed.

[IsailedawayfromFR]

Excessive spending is ALWAYS why debt gets out of control.

Personal finances, govt. It makes no difference

We have record tax receipts coming in.

[ABX]

I'm not buying that.  While the label says Dept of Treasury, the image is from WaPo.

According to Treasury, during that last two fiscal years of the 0 admin, the debt went up about $1.6T

https://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo5.htm

I need to go back and check the source but I believe this was actual net spending increases based on actual budgets passed versus continual resolutions. Remember under Obama, almost every year they didn't pass a new budget, just a CR from the prior years, so it is a baseline of 0.

[catfish1957]

The 1.6 WAS during 0.  It was not the 0.5 the WaPo graph claimed.

Graph was a 3 year period.  You really think Trump is going to stop at $1.6T?  He is one recession away from a skyrocket.  (hint...this is supposed to be good times)

[Hoodat]

The deficit is surging because spending is surging.   What is needed - and the sooner the better - is entitlement reform.

The first step would be to stop calling it "entitlements".  No one is entitled to it.

But the none of the Dems will mention the word,  and President Trump panders to seniors by declaring he won't cut SS or Medicare.   Meanwhile, the bill for my kids and grandkids keeps getting higher.

The Democrats' mission right now is to tank the economy.  It was a winning strategy for them in 1992 and in 2008.  As for Trump, he simply does not have the gonads to do what needs to be done.  He is the Chief Executive.  He gets to decide whether or not allocated funds get spent.  And so far, he hasn't saved a dime.

The bottom line here is that government can only collect 19% of GDP no matter where you set the tax rates.  So as long as spending exceeds 19% of GDP, we will be running a deficit.  Trump's history here has been to declare bankruptcy and try to negotiate a better deal.  This does not bode well for the US.

[Hoodat]

I'm not buying that.  While the label says Dept of Treasury, the image is from WaPo.

According to Treasury, during that last two fiscal years of the 0 admin, the debt went up about $1.6T

https://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo5.htm

The problem with the graph is that it cherry picks Obama's two best years while ignoring his six worst.  When Obama took office, our deficit was $400 billion with Congress only funding five months of Bush's budget.  Shortly after Obama was sworn in, that deficit increased by over a trillion dollars.  None of this acknowledged by the graph, nor the press in general.  They continue to attribute that deficit spending to Bush even though it wasn't even voted on until after he left office.

[Absalom]

Redundant posts belaboring the obvious.
As for Trump, he's as conservative as a cinder-block.
For the bewildered, look as how much debt he
accumulated in business!!!!!

[InHeavenThereIsNoBeer]

Graph was a 3 year period.  You really think Trump is going to stop at $1.6T?  He is one recession away from a skyrocket.  (hint...this is supposed to be good times)

Actually, it was the last 2 years and 3 weeks of 0, compared to the first 2 years and 3 weeks of trump.  I'm just pointing out that WaPo blatantly lied by trying to make debt growth during 0 look much lower than it really was.  Trump is not doing well in the debt department, but he's not really that much worse than 0 was.

I also think it's a little fishy that they didn't use the same dates.  0's numbers include end of tax year receipts for 2014, 2015, and 2016, while trump's only include 2017 and 2018.

[Drago]

Yeah, upthread graph has wrong time periods. Bush (last month)/Obama (1st few months) were running $1 trillion deficits..."stimulus" "shovel-ready jobs", etc., etc..