Federal budget deficit tops $1 trillion in 2019

CNN ^ | January 13, 2020 | Donna Borak

[FewsOrange]

The federal government budget deficit surpassed $1 trillion in 2019, marking the first time the country has crossed that threshold in a calendar year since 2012. The budget deficit reached $1.02 trillion for the 12-month calendar year ending in December, according to data released by the Treasury Department on Monday And the gap appears to be widening. For the first quarter of fiscal year 2020, which began on October 1, the deficit grew 12% over last year. The deficit -- the gap between how much the government spends versus how much it takes in -- increased to $357 billion in the first three months of the fiscal year as military spending and health care costs continued to eclipse federal tax receipts. The shortfall stood at $319 billion for the same period in fiscal 2019.

Federal spending rose 7% to $1.16 trillion between October and December, while federal tax receipts increased 5% to $807 billion. That includes $21.1 billion collected from tariffs paid by importers. The country's deficit has continued to balloon due in part to tax cuts and a two-year budget deal that has boosted federal spending under President Donald Trump. It's swelled to $984 billion at the end of the last fiscal year, up from $665 billion during his first year in office in 2017.

The widening gap comes despite campaign promises by Trump to shrink or even eliminate the nation's deficit. Usually, big budget deficits typically widen during economic downturns -- but the US economy is expanding and unemployment is at a 50-year low.

[dp0622]

CNN getting its shots in.

But yeah the idea that growth can get rid of the deficit worked when the budget wasn’t INSANE.

When the people realize that they can vote themselves free stuff, democracy gets in trouble

[timestax]

[webheart]

For the first time! (since 2012) So not the first time. Hmm.

[Responsibility2nd]

Oh my. I was beginning to think CNN actually was posting an article NOT blaming President Trump.

But I kept reading. Was not disappointed.

[DoodleDawg]

Fake news? So Trump’s Treasury Department lied when they said the deficit for last year was $1.02 trillion? Why would they do that?

[kaehurowing]

The reason our Congress spends all its time on absurd things like shampeachment, transgender rights and Russian collusion is that none of the politicians want people to realize the U.S. is bankrupt.

[euclid216]

Here’s News for CNN:

Responsibility

* The U.S. Constitution vests Congress with the powers to tax, spend, and pay the debts of the federal government. Legislation to carry out these functions must either be:

passed by majorities in both houses of Congress and approved by the President; or

passed by majorities in both houses of Congress, vetoed by the President, and then passed by two-thirds of both houses of Congress; or

passed by majorities in both houses of Congress and left unaddressed by the President for ten days.

So, all the President can do is either sign or veto the budget. If he vetoes, the Government is shut down, and Republicans are blamed.

[Brilliant]

Just impose a luxury tax on the media. Poor people don’t have the time to watch TV. They also don’t respond to advertising.

[Drago]

True that...but PDJT has yet to propose a balanced budget for Congress to consider/reject. 2016-2018 WH budget proposals weren’t balanced and that was the last time the WH had a chance to get one to pass Congress that was even close to balanced...now not so much. His campaign promise to reduce the deficit/debt is in severe jeopardy even if he is re-elected.

[rb22982]

Medicare and medicaid

[Lurkinanloomin]

I stopped worrying about the debt when I realized it wasn’t our country for much longer.

[DoodleDawg]

So, all the President can do is either sign or veto the budget. If he vetoes, the Government is shut down, and Republicans are blamed.

And as head of the Republican party, the President can make is wishes known to the Republicans in the House and Senate. He can propose his own budget and have them work to get it through Congress. The fact of the matter is Trump is no more concerned about deficits than the Republicans in Congress are, and no more interested in balancing anything.