US CBO sees deficit exploding amid steep recession
Washington (AFP) - As data showing the severe economic damage from the coronavirus pandemic continues to pile up, the Congressional Budget Office said Friday the US budget deficit will explode this year to $3.7 trillion.The estimate is more than triple the CBO's forecast last month, and comes after Congress rushed out multiple aid packages totaling nearly $3 trillion to help workers and businesses amid the widespread lockdowns imposed to contain the coronavirus pandemic.As the US death toll from COVID-19 hit 50,000 and most businesses nationwide remain shuttered or sharply curtailed, GDP in th...
Despite Healthy Economy, U.S. Deficit Set To Reach $1 Trillion After GOP Corporate Tax Cuts
An annual congressional report released on Tuesday said the U.S. budget deficit is likely to burst through the symbolic $1 trillion barrier this year despite a strong economy.This report comes as Congress authorized new spending last year, as well as the repeal of several taxes used to help finance the Affordable Care Act in December in combination with massive corporate tax cuts under the GOP tax plan enacted in 2017. The deficit has grown tremendously under President Donald Trump and Treasury Secretary Steve Mnuchin and will continue to grow in the future. This would be the first time the na...
US deficit seen ballooning over $1 tn this year: CBO
Washington (AFP) - The US budget deficit is expected to swell this year to over $1 trillion and remain above that level for a decade as government debt balloons, the independent Congressional Budget Office said Tuesday.Because of the large deficits, CBO said the US debt will grow to 98 percent of the size of the American economy by 2030 -- the highest share since 1946 -- and continue to rise "far higher than it has ever been" to 180 percent of GDP by 2050.Following President Donald Trump's massive tax cut package at the end of 2017, the deficit has been marching higher, despite administration ...
Federal Deficit Soars 32% To $895 Billion After Passage Of GOP Tax Cuts
The federal deficit has climbed 32% to $895 billion over the first 11 months of fiscal year 2018, according to the Congressional Budget Office (CBO).The nonpartisan CBO cited the recent Republican tax law as well as the bipartisan agreement to increase spending as the primary drivers of the increase. As a result, revenue only rose 1%, failing to keep up with a 7% surge in spending. The CBO also estimates $222 billion more than the shortfall recorded during the same period last year.The government took in about $105 billion more in individual and payroll taxes but $71 billion less in corporate ...