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Federal deficit unexpectedly set to double this year
Axios ^ | Neil Irwin ,

Posted on 09/06/2023 5:59:04 AM PDT by Red Badger

The federal deficit is expected to nearly double this year, from about $1 trillion last year to $2 trillion for the fiscal year ending Sept. 30

Why it matters: There's no precedent for deficits this large, as a share of the economy — outside war, deep recession or pandemic.

The WashPost's Jeff Stein reported Sunday on the stunning projected figure from the Committee for a Responsible Federal Budget. Between the lines: Such huge spending imbalances contribute to high interest rates for consumers — including mortgages — in the short run.

In the long run, it means interest costs will likely squeeze all other federal priorities. What's happening: Bigger interest payments + lower tax receipts, despite strong economic growth.

"A strong economy usually reduces the deficit. Not this time," Stein writes. Reality check: The annual deficit was even higher — $2.8 trillion — in 2021, amid record COVID spending, according to the Congressional Budget Office.

Go deeper: White House urges Congress to avoid shutdown with short-term funding bill


TOPICS: Business/Economy; Government; History; Politics
KEYWORDS:
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To: srmanuel

If inflation really takes off (and they won’t be able to massage the numbers anymore) we will see interest on the debt skyrocket and take up most of the federal budget. The pain and suffering will be immense.
Biden and company will be tarred and feathered in the history books but that will be scant consolation in the dystopia coming down the pike.


41 posted on 09/06/2023 8:06:23 AM PDT by Deo volente ("When we see the image of a baby in the womb, we glimpse the majesty of God's creation." Pres. Trump)
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To: Red Badger

He did The Crash...

He did the Monster Crash!.................

thanks ... now I have goofy monstas dancing around in my head ...
sheeeech


42 posted on 09/06/2023 8:16:06 AM PDT by 1of10 (be vigilant , be strong, be safe, be 1 of 10 .)
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To: 1of10

It’ll be done in a flash!................


43 posted on 09/06/2023 8:20:49 AM PDT by Red Badger (Homeless veterans camp in the streets while illegal aliens are put up in hotels.....................)
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To: Bubba_Leroy

The Republican candidates have a solution for this issue—send lots more money to Ukraine!

P.S. Don’t forget to pay the Big Guy his 10%.


44 posted on 09/06/2023 8:24:02 AM PDT by cgbg ("Creative minds have always been known to survive any kind of bad training." Anna Freud.)
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To: cableguymn

I don’t think any politician Republican or Democrat is willing to serve up the medicine necessary to fix the problems with the economy

No one is going to propose reforming Social Security or Medicare much less make real cut to the military

Tax increases on the top of 1% also have to be on the table

Cutting discretionary spending is not going get it done

We need energy dominance, lower spending and growing economy for a few years and that won’t happen without some major reforms


45 posted on 09/06/2023 8:24:39 AM PDT by srmanuel ( that )
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To: Red Badger

“Unexpectedly”.

Drink!


46 posted on 09/06/2023 8:27:16 AM PDT by The Antiyuppie (When small men cast long shadows, then it is very late in the day.)
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To: srmanuel

Tax increases on the top of 1% also have to be on the table


why? they are paying over half the taxes.

EVERYONE needs skin in the game. Even if it’s only a 1% rate


47 posted on 09/06/2023 8:37:39 AM PDT by cableguymn
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To: Red Badger

Are we going to have to start drinking again?


48 posted on 09/06/2023 8:52:13 AM PDT by VTenigma (Conspiracy theory is the new "spoiler alert")
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To: Red Badger

This was as predictable as saying the sun will rise in the East tomorrow. Just wait until the debt grows to $40 trillion and annual interest doubling the amount of the defense budget. Neither party is capable of addressing it, and that goes for Mike Freaking Pence!


49 posted on 09/06/2023 8:58:34 AM PDT by Night Hides Not (Remember the Alamo! Remember Goliad! Remember Gonzales! Come and Take It!)
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To: cableguymn

Because that’s where the money is, you can’t tax the average American anymore given the economy, there was a huge and massive transfer of wealth during Covid the number of billionaires skyrocketed, plus the gap between rich and poor is huge and getting bigger, if you want real political war then keep screw average people while enriching the truly wealthy


50 posted on 09/06/2023 8:58:57 AM PDT by srmanuel ( that )
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To: srmanuel

Taxing the wealthy sounds simple but is actually stunningly difficult.

The wealthy can hire world class tax attorneys to scrutinize the tax code and find a wide variety of loopholes for their clients.

The notion that Congress would close those loopholes to any significant degree is laughable on its face.


51 posted on 09/06/2023 9:01:58 AM PDT by cgbg ("Creative minds have always been known to survive any kind of bad training." Anna Freud.)
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To: cgbg

It’s not difficult if you have the political will to enact real tax reform and eliminate many of the loopholes

We are so far in debt and we can’t ask average Americans to pay the entire bill, everyone needs to pay more and the really wealthy need to pay more, this isn’t 1980 when Reagan was POTUS we are In much worse shape now


52 posted on 09/06/2023 9:06:02 AM PDT by srmanuel ( that )
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To: srmanuel

Raising taxes will not close the defict. The will slow the economy down even more and lower revenue.


53 posted on 09/06/2023 9:07:44 AM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: srmanuel

“real tax reform and eliminate many of the loopholes”

Lol.

Those are politician talking points—absolutely meaningless in the real world.

Any wealthy person can create corporations, foundations, trusts, international versions of the same, etc etc etc.

Do you know any wealthy people and ever talked to them about how they avoid taxes?

It is mind blowing what they can do—true magic.


54 posted on 09/06/2023 9:10:32 AM PDT by cgbg ("Creative minds have always been known to survive any kind of bad training." Anna Freud.)
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To: central_va

This isn’t 1980 we need drastic measures and that includes tax increases, combined with spending cuts, regulation reforms and massive increases in domestic energy production

We won’t have a growing economy regardless of the tax rates


55 posted on 09/06/2023 9:11:24 AM PDT by srmanuel ( that )
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To: cgbg

I didn’t say it was going to happen, I’m advocating what should happen, I did say there was no politician Republican or Democrat that is willing to make the hard decisions right now, we are on the precipice of a major recession

That’s why we are screwed


56 posted on 09/06/2023 9:16:18 AM PDT by srmanuel ( that )
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To: srmanuel
"includes tax increases"

NO NO NO!!!

Ask the right damn question: the USA needs REVENUE increases.

If you dont discuss tariffs then you are not a serious deficit hawk.

Raising taxes DECREASES revenue. That is a fact.

Raising taxes and interest rates at the same time will mean a Marxist revolution sooner rather than later. No thanks.

57 posted on 09/06/2023 9:21:35 AM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: srmanuel

I get it—it just irritates me when I hear talking points that sound like the ones politicians have been spouting for decades—we all know they are lying at this point.


58 posted on 09/06/2023 9:29:20 AM PDT by cgbg ("Creative minds have always been known to survive any kind of bad training." Anna Freud.)
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To: Red Badger

The title says it is unexpected but the first sentence says it is expected.


59 posted on 09/06/2023 9:30:02 AM PDT by gitmo (If your theology doesn’t become your biography, what good is it?)
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To: srmanuel

My other point is that wealthy people really are different than we are.

They have several houses in several countries—if they are a touch paranoid one of those will be in a country without an extradition treaty with the US.

If you tax “income” they will make sure not to show any as coming to them.

If you tax “property” they will just lease instead of own.

Foundations are another example—they have been in the tax code for many decades and it seems like every rich leftist has one...the Clintons show how it is done—want a fancy wedding for your daughter just charge it to the foundation...

Another scheme is life insurance—you can borrow against it and nothing taxable is happening.

Municipal bonds—miserable investment but tax free income...

As for operating businesses—if you own several in different countries you can make sure that the profits miraculously flow to the subsidiary in the jurisdiction with the lowest income taxes...

and on and on and on and on....

and with tax accountants ready to defend them on each and every move if the IRS decides to audit anything.

The game is totally rigged—and even if a politician turned down all the bribes and actually wanted to fix it would be like holding up your hand to stop a tsunami.


60 posted on 09/06/2023 9:38:52 AM PDT by cgbg ("Creative minds have always been known to survive any kind of bad training." Anna Freud.)
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