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National Govt & Politics
Even with better June, federal deficit up 23 percent in 2019
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Even with better June, federal deficit up 23 percent in 2019

Even with better June, federal deficit up 23 percent in 2019

Even with better June, federal deficit up 23 percent in 2019

The tide of red ink for the federal government slowed in the month of June as the Treasury Department reported Thursday that Uncle Sam ran a deficit of $8 billion last month, but that still left the total deficit after nine months of the current fiscal year at $747 billion, up 23 percent from the same point a year earlier.

Overall, revenues are up by $68 billion in 2019 or 2.7 percent. Government spending has gone up by almost $210 billion or 6.6 percent.

The official White House forecast is for a deficit in 2019 of nearly $1.1 trillion - up dramatically from $779 billion in 2018.

When it comes to the increased revenues in 2019, almost one-third of the $68 billion increase is from the collection of $22 billion more in tariffs than a year earlier.

The feds have also seen an increase of $8 billion in certain excise taxes, and almost $3 billion more in corporate income tax payments, while individual income tax payments are down by $4 billion when compared to 2018.

The release of the new deficit figures came as Republicans and Democrats were still trying to hash out a new budget deal for 2020, as there is still no agreement on how much money will be spent on programs outside of Social Security and Medicare.

Under a budget law from 2011, automatic budget cuts would kick in next year unless the Congress comes to an agreement to re-set the spending limits known as the 'budget caps.'

Republicans and the President want defense spending to grow from $716 billion this year to $750 billion in 2020; Democrats argue they should get an equal increase in domestic spending.

If the sequester kicks in, defense spending would face at least $71 billion in cuts, while domestic programs would be hit with at least $55 billions in automatic reductions.

The White House budget forecast is for at least four straight years of deficits over $1 trillion.

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Washington Insider

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