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Utopia Talk / Politics / Fiscal conservatism is back
Sun Feb 04 10:04:39
Once GOP took over all branches of govt, things quickly returned to normal..

U.S. budget deficit to top $1-trillion in 2019: budget experts

WASHINGTON (Reuters) - As the U.S. Congress limps toward the likely passage next week of another stopgap spending bill to avert a government shutdown, a Washington think tank has estimated the federal budget deficit is on track to blow through $1 trillion in 2019.

If it does, it would be the first time since 2012 the U.S. economy will have to support a deficit so large, highlighting a basic shift for the Republican Party, which has traditionally prided itself on fiscal conservatism.

The Committee for a Responsible Federal Budget, a Washington fiscal watchdog, said the red ink may rise in fiscal 2019 to $1.12 trillion. If current policies continue, it said, the deficit could top a record-setting $2 trillion by 2027.

The committee had previously projected the deficit - the difference between the government spending and its annual tax revenue - would reach $983 billion in fiscal 2019. That estimate came after Congress in December passed a tax overhaul that will add about $1.5 trillion to the national debt over a decade.

But that estimate was made obsolete by a shutdown-averting stopgap funding bill Congress approved earlier this month. It delayed the implementation of some healthcare taxes, further reducing the government’s projected tax revenues.

Congress in coming days is expected to weigh another stopgap funding bill, needed by Feb. 8. Lawmakers also want to pass disaster relief funding, and they are pursuing an agreement to lift budget caps on spending.

Stan Collender, a longtime budget expert, predicted in October that trillion-dollar deficits would become “the new normal” under President Donald Trump. Trump and fellow Republicans control the White House and both chambers of Congress.

There were four consecutive $1-trillion deficits under former President Barack Obama. But they resulted from a historic financial crisis, a recession and stimulative spending.

“During the Trump years, the deficits are occurring mostly because of legislative changes, like the tax cut,” Collender said.

In June 2017, before the tax overhaul was enacted, the nonpartisan Congressional Budget Office, Congress’ official scorekeeper, predicted the U.S. government would hit a trillion-dollar deficit in fiscal 2022.

An updated CBO report would typically be released around now, but the office said last week that the update would be delayed, partly because of the need to produce projections that reflect the recently enacted tax legislation.
Sun Feb 04 10:07:10
Any bets on how long it would take for republicans to gracefully pivot to cutting spending, you know, in the name of budget discipline. Somebody has to pay for that beautiful corporate tax cut.
Sun Feb 04 10:09:54
I see that there is already a thread on this
Sun Feb 04 10:47:07
It's all part of the plan. Explode the deficit. Wait for the economy to tank when Democrats take over. Blame the democrats for how slow the recovery is when there is no debt room for fiscal stimulus.

Their base is so profoundly ignorant, they buy it up.
the wanderer
Sun Feb 04 10:55:30
i think the plan is blow up the deficit so they can chop away at entitlements

can't touch military spending of course, especially with idiot boy constantly claiming in how much dire need we are for more
Sun Feb 04 10:57:39
They will chop away at entitlements for millenials and younger. The baby boomers who elect Republicans will remain untouched.

More rape of future generations to win elections today.
Sun Feb 04 10:58:13
Out of all the hypocrisy and just utter red taped, fucked up idiocy in Washing DC, this is my biggest pet peeve.

The party of eternally demanding economic frugality ALWAYS somehow finds itself expanding the deficit to ever larger levels.

It's maddening.
Sun Feb 04 11:00:07
"Still better than the democrats!"
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