December 11, 2018

SUSTAINABILITY: Budget deficit soars in first two months of fiscal year.

The country’s budget deficit in the first two months of fiscal 2019, which began Oct. 1, was 50 percent higher than in the same period the previous year, according to the Congressional Budget Office (CBO), though the figure was inflated by timing.

In October and November, the federal government spent $303 billion more than it took in, compared to $202 billion in the same period of fiscal 2018, according to the CBO.

Tax revenues were just 3 percentage points higher than the previous year, largely because of the GOP tax law, while spending surged 18 percent.

Revenues, in other words, still grew faster than inflation — but spending grew six times fast than even that.

We have a spending problem, not a revenue problem.

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