Trump’s First Annual Budget Deficit Rises to a Six-Year High

[Belsnickel]

https://www.bloomberg.com/news/articles/2018-10-15/trump-s-first-annual-budget-deficit-climbs-to-a-six-year-high

Quote:The U.S. budget deficit grew to $779 billion in Donald Trump’s first full fiscal year as president, the highest since 2012 amid tax cuts and spending increases.

The budget gap for the 12 months through September was 17 percent wider than the same 12-month period a year earlier, as spending rose 3.2 percent and revenue gained just 0.4 percent, according to a Treasury Department report released Monday. The deficit as a share of total economic output was 3.9 percent in fiscal 2018, up 0.4 percentage point from the prior year. The government’s fiscal year runs from Oct. 1 to Sept. 30.

The budget deficit has continued to climb in recent years, raising concerns the country’s debt load of more than $21.5 trillion will grow out of control. The Treasury reported this month that the government paid $523 billion in total interest in fiscal 2018, the highest on record.

The Treasury report also comes just weeks before midterm elections in Congress and threatens to undermine a longstanding Republican argument that the GOP is a better steward of the nation’s finances. Trump frequently criticized his Democratic predecessor Barack Obama for running up the deficit, and in 2012 recommended banning lawmakers from reelection if Congress couldn’t balance the budget.

But the Congressional Budget Office, a nonpartisan arm of Congress, forecasts government spending will outweigh revenue by $973 billion in fiscal 2019 and more than $1 trillion the next year. That would be the first time the deficit exceeds $1 trillion since 2012, when the American economy was still recovering from the Great Recession.

Republican tax cuts, increased federal spending and an aging population have contributed to the fiscal strains, though the GOP says tax reform enacted this year will spur economic growth and lift government revenue. Corporate income-tax receipts fell 31 percent in fiscal 2018 while individual income taxes gained 6.1 percent, according to Treasury data.

“America’s booming economy will create increased government revenues -- an important step toward long-term fiscal sustainability,” Trump’s budget director, Mick Mulvaney, said in a statement accompanying the Treasury report. “But this fiscal picture is a blunt warning to Congress of the dire consequences of irresponsible and unnecessary spending.”

In an effort to finance the yawning budget gap, Treasury has signaled it will step up the pace of debt issuance, borrowing $769 billion in the second half of the current calendar year. That would be the most since 2008.

Trump’s top economist, Kevin Hassett, said this month the president will unveil measures soon to address the shortfall, without providing specifics.

“The deficit is absolutely higher than anyone would like,” Hassett said at the time.

[GMDino]

(10-15-2018, 05:06 PM)Belsnickel Wrote: https://www.bloomberg.com/news/articles/2018-10-15/trump-s-first-annual-budget-deficit-climbs-to-a-six-year-high

Plenty of blame to go with this, but I'm sure President Straight Talker will take some of the grief over it and calmly explain his plan to change course.

[Benton]

I'll bet a dollar that the solution proposed is more tax cuts.

[GMDino]

(10-15-2018, 05:26 PM)Benton Wrote: I'll bet a dollar that the solution proposed is more tax cuts.

Surely!  To encourage investments!  That they can tax at a lower rate!

Seems fool proof!

[Belsnickel]

Now, Bernie isn't entirely correct on this because we all know they'd have found ways to spend money, regardless. But...

4 Republican policies led to a $779 billion deficit in 2018:

- Bush Tax Cuts: $488 B
- Trump Tax Cuts: $164 B
- Wars in Iraq and Afghanistan: $127 B
- Defense increases since 9/11: $156 B

Without tax cuts for the wealthy and endless wars we would've had a $156 billion SURPLUS.

— Bernie Sanders (@SenSanders) October 15, 2018

[Dill]

(10-15-2018, 06:10 PM)Belsnickel Wrote: Now, Bernie isn't entirely correct on this because we all know they'd have found ways to spend money, regardless. But...

Maybe in a jobs program--like rebuilding roads and bridges, and some nifty high speed trans continental trains.

[Dill]

(10-15-2018, 05:06 PM)Belsnickel Wrote: https://www.bloomberg.com/news/articles/2018-10-15/trump-s-first-annual-budget-deficit-climbs-to-a-six-year-high

“America’s booming economy will create increased government revenues -- an important step toward long-term fiscal sustainability,” Trump’s budget director, Mick Mulvaney, said in a statement accompanying the Treasury report. “But this fiscal picture is a blunt warning to Congress of the dire consequences of irresponsible and unnecessary spending.”

Time for cuts in Medicare. Privatize Social Security to make it "better."  Limit SNAP to two weeks; families with children eligible to re-apply after two years. Start charging federal and state prisoners for room and board. REALLY make Mexico pay for the wall. Stop veterans from triple dipping.

Defund NASA and NOAA.

And next time we invade, take the oil.

[*michaelsean*]

(10-15-2018, 08:08 PM)Dill Wrote: Maybe in a jobs program--like rebuilding roads and bridges, and some nifty high speed trans continental trains.

Where do all you guys live? I can’t drive 1/4 without running into yet another orange barrel parade.

[Belsnickel]

(10-15-2018, 08:32 PM)michaelsean Wrote: Where do all you guys live? I can’t drive 1/4 without running into yet another orange barrel parade.

Pfft, there is so much roadwork needed in my area. Honestly, there needs to be a project to widen this stretch of I-81 to 6 lanes. There is a high volume of truck traffic, it is super congested at busy times, and there is always a wreck. Every day, at least twice a day, there is a wreck within a 7 mile radius of my nearest exit. Yet nothing happens.

[*michaelsean*]

(10-15-2018, 08:53 PM)Belsnickel Wrote: Pfft, there is so much roadwork needed in my area. Honestly, there needs to be a project to widen this stretch of I-81 to 6 lanes. There is a high volume of truck traffic, it is super congested at busy times, and there is always a wreck. Every day, at least twice a day, there is a wreck within a 7 mile radius of my nearest exit. Yet nothing happens.

‘Cause we took all the barrels.

[Benton]

(10-15-2018, 08:32 PM)michaelsean Wrote: Where do all you guys live?  I can’t drive 1/4 without running into yet another orange barrel parade.

That doesn't always mean they're fixing major problems, though.

The way federal road funding is, you get chunks for each state. Most States then divy it up in different ways, including based off licensing. So a county with lots of car lots may get lots of road aid, and a county with none gets less. Bridges and big ticket items usually eat up too much of the road budgets, so lawmakers generally have roads because fewer potholes gets them votes 

[GMDino]

(10-16-2018, 12:04 AM)Benton Wrote: That doesn't always mean they're fixing major problems, though.

The way federal road funding is, you get chunks for each state. Most States then divy it up in different ways, including based off licensing. So a county with lots of car lots may get lots of road aid, and a county with none gets less. Bridges and big ticket items usually eat up too much of the road budgets, so lawmakers generally have roads because fewer potholes gets them votes 

Yep.  A truly comprehensive, long term plan (with funding) would do wonders...but then we couldn't cut taxes.

[Belsnickel]

(10-16-2018, 12:17 AM)GMDino Wrote: Yep.  A truly comprehensive, long term plan (with funding) would do wonders...but then we couldn't cut taxes.

And we may have to (gasp) cut into that precious war mongering defense spending.

[GMDino]

(10-16-2018, 09:00 AM)Belsnickel Wrote: And we may have to (gasp) cut into that precious war mongering defense spending.

Somewhere I have the comic that says we should invade the United States so we will pay to fix our roads and bridges.

Not the one I was thinking of but...

[GMDino]

In the course of a five minute conversation in our shop today one of our huge Trump supporters (I am the only democrat in the building) told me business is going to be booming soon because of Trump!  Followed by his bitching that his 401K lost a bunch of money over the last few weeks.

I started to explain but it wasn't worth it.  lol.

[Yojimbo]

He's only doing exactly what the "we need to run the government like a business" crowd voted him in to do. It's just sad they don't realize how Trump runs a business. Load it up with debt, file for bankruptcy and lay everybody off. He's accomplished the first part, but you can't do the next two things in government, that's why having a business man run government is ALWAYS a bad idea.

[*michaelsean*]

(10-16-2018, 10:15 AM)GMDino Wrote: In the course of a five minute conversation in our shop today one of our huge Trump supporters (I am the only democrat in the building) told me business is going to be booming soon because of Trump!  Followed by his bitching that his 401K lost a bunch of money over the last few weeks.

I started to explain but it wasn't worth it.  lol.

Tell the guy to quit looking at his 401K every other week.  People who do that end up trying to fix it, and get slaughtered.

[*michaelsean*]

I'm all for finding ways to reduce military spending as well, but part of me doesn't want to take away everyone's "go to".

[Goalpost]

(10-16-2018, 11:27 AM)michaelsean Wrote: Tell the guy to quit looking at his 401K every other week.  People who do that end up trying to fix it, and get slaughtered.

Yep.  Dollar cost averaging.  There is no way to time the market.  I tell people who complain on a dip that they are actually buying more stock right now because of it.

[Dill]

(10-16-2018, 10:15 AM)GMDino Wrote: In the course of a five minute conversation in our shop today one of our huge Trump supporters (I am the only democrat in the building) told me business is going to be booming soon because of Trump!  Followed by his bitching that his 401K lost a bunch of money over the last few weeks.

I started to explain but it wasn't worth it.  lol.

Yes, it IS worth it. Go back and collar that guy.