Looks like maybe not all tax cuts increase revenues after all.
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They don’t but a big part of this deficit is due to the Fed raising interest rates which increases the interest costs on Obama’s debt.
Rate hikes might be a small factor but they don't affect the debt service on the debt issued prior to the rate hike.
Of course, the new debt, including the rollover of the prior debts, will be at the higher rate but I think the Fed's action was too recent to have a big impact on these numbers.
“which increases the interest costs on Obama’s debt”
What about Republican debt? Is it exempt?
“They don’t but a big part of this deficit is due to the Fed raising interest rates which increases the interest costs on Obama’s debt.”
Good catch. That is likely a big chunk. Interest rates were artificially kept low longer than they should have. Now with Trump pro-growth policies kicking in the economy is doing well. No need for artificially low interest rates. Trump can’t have it both ways — good economy and artificially low interest rates.
Interest on the debt was $263 billion in 2017 and $310 billion in 2018. That's not the reason for most if the increase in the deficit. Medicaid, Social Security, and Defense are the reason. Interest on the 10 year T-bills actually went down. The increase in interest expense is due to the increase in debt.
agreed; but if you think Trump is a fiscal conservative, I have a bridge in Brooklyn I’ll sell ya.