Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: SirWalterRalegh who wrote (151401)	10/25/2019 5:44:18 PM
From: TobagoJack	Read Replies (1) \| Respond to of 217659

The suspect WSJ characterised the result to date in following way, namely putting hope on the future, assuming there is continuity of team. << The president and his advisers have privately discussed refocusing on cutting spending in his second term, according to aides.>> wsj.com U.S. Deficit Hits Seven-Year High Federal spending climbed 8%, while revenue increased only 4%, in fiscal year ending in September Kate DavidsonUpdated Oct. 25, 2019 4:49 pm ET Higher spending on the military, interest payments on the debt and Medicare contributed to the widening budget gap, the Treasury Department said. Photo: Patrick Semansky/Associated PressWASHINGTON—The U.S. spent nearly $1 trillion more in fiscal 2019 than it took in—the highest deficit in seven years that would have been bigger without a rebound in corporate tax revenue. Government deficits have now increased for four years in a row, the longest stretch of U.S. deficit growth since the early 1980s, a period marked by two recessions and a jobless rate near 11%. The budget gap widened 26% in the fiscal year that ended Sept. 30, to $984 billion from $779 billion deficit the previous year, the Treasury said, as rising government outlays continued to outpace tax collection. Annual deficits have risen 68% since 2016 during a period of historically low unemployment and stronger wage gains. Tax cuts restrained revenue growth last year, and a bipartisan budget deal ramped up government spending. Deficits are on track to exceed $1 trillion a year over the coming decades and would rise higher if the economy weakens. SHARE YOUR THOUGHTSHow should the Trump administration be handling the national debt crisis? Join the conversation below. Deficits usually shrink during economic expansions as rising household income and corporate profits boost government tax revenues, while spending for safety-net programs, such as unemployment insurance or food stamps, declines. As a share of economic output, deficits totaled 4.6% in fiscal 2019, up from 3.8% in 2018, the Treasury said. Revenues as a share of gross domestic product fell last year, to 16.3% from 16.4% in the previous fiscal year, while federal outlays surged, to 20.9% of GDP from 20.2% the previous year. “This administration came into office talking about reducing deficits, and the results have been the exact opposite,” said Bill Hoagland, senior vice president at the Bipartisan Policy Center and a former Republican congressional budget aide. Treasury Secretary Steven Mnuchin said Friday that President Trump’s economic agenda is working, pointing to the job market and paycheck growth. “In order to truly put America on a sustainable financial path, we must enact proposals—like the president’s 2020 budget plan—to cut wasteful and irresponsible spending,” Mr. Mnuchin said in a statement accompanying the latest figures. Tax revenue rebounded in fiscal 2019, following steep declines in corporate tax revenue and flat individual tax receipts last year following tax cuts enacted in 2017. The Treasury said Friday corporate tax receipts increased 12% in the fiscal year ending in September, while individual income tax revenue rose 3%. Most of those gains came in the second half of the year, a senior Treasury official said. Corporate tax revenue was $60 billion in September, a month when companies made required payments. That is up 43% from September 2018, providing further indication that companies may have done maneuvers that reduced their tax liabilities in the first year of the new tax law even more than anticipated. Higher tax revenues weren’t enough to offset federal spending. Increases in interest rates and a bigger government debt load pushed up interest costs by 10%, to $573 billion. Medicare spending also rose 10% to $783 billion, due to rising enrollment and higher health-care costs, a senior Treasury official said, and spending on the military climbed 8%, to $654 billion. The fiscal 2019 deficit eclipsed $1 trillion through August, but fell in September, when the government typically records a surplus as corporations make quarterly tax payments. Long-term costs associated with an aging population, including higher Social Security and Medicare spending, are also expected to continue pushing up deficits over the coming decades. Those deficits have led the Treasury to ramp up borrowing in recent years. The government has said it expects to borrow more than $1 trillion for the second year in a row in 2019. The president and his advisers have privately discussed refocusing on cutting spending in his second term, according to aides. — Richard Rubin contributed to this article. Write to Kate Davidson at kate.davidson@wsj.com