Six-Month U.S. Federal Budget Deficit: $1.1 Trillion!

Wall Street Journal via MSN ^ | 04/10/2024 | The Editorial Board

[SeekAndFind]

Washington continues to spend like deficits and debt don’t matter, and the politicians would rather you don’t know. For the record, the Congressional Budget Office reported Monday that the federal budget deficit for the first six months of fiscal 2024, ending in March, was $1.064 trillion. Enjoy it, because you’ll eventually pay for it in higher taxes.

The problem isn’t a shortage of tax revenue, which rose 7% from a year earlier to $2.19 trillion. Individual income-tax and payroll-tax revenue both rose 6%, while corporate income taxes rose 35%. Is a 7% increase what President Biden would call a “fair share” increase? Probably not, because he wants to raise taxes even higher if he’s re-elected. The deficit is a spending problem, as ever. Total outlays for the six months rose 6% to $3.25 trillion, and $73 billion more if not for some year-over-year timing differences. The usual suspects are behind it—namely, Medicare payments, which climbed 10%, and Social Security benefits, which rose 9%. As everyone but the politicians admit, entitlement spending drives deficits and debt.

The spending increase would have been much larger if not for the decline in pandemic-related refundable tax credits and food stamps. Medicaid outlays were relatively flat, thanks in part to the ability of states to wean themselves from pandemic-era payments that the feds had mandated. President Biden wanted to keep the states on the hook.

All of those savings were swamped, however, by the $133 billion increase in net interest on federal debt held by the public—a 43% increase. The six-month interest payments of $440 billion exceeded the $412 billion in outlays for defense. As CBO has documented in other places, interest payments are expected to keep climbing as interest rates return to a more normal historical pattern.

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[SeekAndFind]

[Right_Wing_Madman]

Thanks for the graph. It is interesting to note that Social Insurance and Retirement pays for Social Security but all the other taxes only pays for about half of the other expenses.

[TigersEye]

Looks like a bloodbath! A Biden bloodbath.

[frank ballenger]

If this keeps up someday it will be some real money we’re talking about.
As Sen. Everett Dirksen noted once.

[srmanuel]

Minus the Treasury’s accounting gimmicks the deficit is likely well over 2 trillion, its an election year and lying about the economy is in full display

[woodpusher]

This site lists Federal Debt to the penny. The datapoints indicate we have garnered over $3T in debt since the beginning of 2023 and about $1.4T since the 9/30/2023 close of FY23.

12/30/2022 ... $31,419,689,421,557.90

03/30/2023 ... $31,460,917,912,000.64

06/30/2023 ... $32,332,274,184,762.99

09/30/2023 ... $33,167,334,044,723.16

12/29/2023 ... $34,001,493,655,565.48

04/09/2024 ... $34,581,009,999,544.53

[Owen]

FYI people, be aware the full year projected deficit is, or has been, $1.8T. After 6 months, well over 1/2 that.

But frankly, this should not be discussed.

There are only two items for discussion this year — Drain the Swamp and Build the Wall. Absolutely ANYTHING else getting minutes is counterproductive.

[srmanuel]

The debt figures do show we are so deep into debt, we have no real chance to pay it off, the next recession will explode the already high debt even higher.

If you follow the job and inflation numbers, you realize they are not good and if reported properly IMO would show things to be a lot worse.

Admittedly, I have no proof the debt numbers are wrong, considering how the government lies and deceives the public continually I have no faith the debt numbers are remotely accurate.

[Angelino97]

The problem isn’t a shortage of tax revenue, which rose 7% from a year earlier to $2.19 trillion.

Not surprising. I'm sure Zimbabwe is collecting hundreds of billions in taxes.

The more paper in circulation, the more paper for paying taxes.

[Justa]

Oh, but listen to Dave Ramsey and some FReepers and “pay off your debt!!” “Don’t go into debt in a recession!!!”

Utter BS. Inflation destroys savers and whole economies.

Any debt I can get that has an interest rate below the rate of return on my investments is FREE MONEY!

We are not on the gold standard.

[Adder]

increase in net interest on federal debt held by the public

So quit charging interest...they make everything else up as the merrily spend along...

[eyeamok]

Don’t worry everything will be just fine, we won’t run out of money. I promise they will print more as they need it...

[Opinionated Blowhard]

And only about 10% to 20% of the country cares. Neither Democrats nor most Republicans care about balancing the budget anymore. Its a political loser. Keep spending until we go bankrupt. The generation that put all these spending programs in place will be dead when the s__t hits the fan so they don’t care.

[Bishop_Malachi]

Washington continues to spend like deficits and debt don’t matter, and the politicians would rather you don’t know.

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Actually, they could careless if you know. They only thing they worry about is public outrage regarding inflation. And Brandon thinks he can win on other issues besides inflation. I happen to believe he’s wrong, but that’s just my opinion.