In new numbers released by the Treasury Department and in it’s biggest inflation for a one-month period, the United States federal deficit hit $234 billion last month, Bloomberg has reported.
The budget’s gap widened to $234 billions in February, compared with a fiscal gap of $215.2 billion a year earlier, surpassing a previously-made monthly record of $231.7 billion that was set seven years ago.
Now five months into the fiscal year (beginning in October), the deficit has surpassed a half-trillion dollars; $544 billion.
What’s to blame here? The short answer is that the government paid back more corporate taxes that it took in at a loss of a record $669 million. Also to blame is the corporate tax which was down $14.3 billion from the same period just last year.
The Trump-backed and passed GOP tax law (explained is great detail here) is projected on-track to cost around $1.9 trillion over the timespan of one decade.
At the time of the plan’s initial passing Republicans frequently compared their 2017 tax cut bill to the 1986 Tax Reform Act. To that end, the Center for Public Integrity compared the processes that the 99th and 115th Congresses followed to deliberate, research and write their respective bills, looking at the number of hearings, witnesses and government reports issued.
While spending numbers are up, $145.6 billion, the Congressional Budget Office has been issuing grave warnings about the overall national debt, stating that at the current rate of speed in spending, we’re on track to hit a whopping 93 percent of GDP in a decade. The last time it was this high was just after WWII.
From History.com‘s breakdown of National Debt and where we currently stand:
‘The report stated that if the temporary spending increases and tax cuts are made permanent, the national debt would reach $33 trillion, or 113 percent of GDP, by 2028, and could be twice the size of the U.S. economy in about 25 years.’
Last month it was announced through gritted teeth that the National debt had surpassed $22 trillion for the first time in our country’s history. CNN‘s Chris Cillizza explains:
Featured image via YouTube screenshot.