clearn.png
Monday May 27th, 2019 3:22AM

US budget deficit hits $214.1 billion in August

By The Associated Press
Related Articles
  Contact Editor

WASHINGTON (AP) — The federal government racked up a $214.1 billion deficit in August, double the red ink from a year ago, although a big part of that increase reflected quirks in the calendar.

The Treasury Department said Thursday the August deficit pushed the deficit for the first 11 months of the budget year to $898.1 billion, 33 percent higher than the same period a year ago.

With just one month to go in this budget year, the government is on track to run up the biggest annual deficit in six years.

The August imbalance, which was a record for the month of August, looked worse because large benefit payments that would have been made in September got pushed into August because Sept. 1 fell on a Saturday.

In addition, Social Security payments, which are normally made on the third of each month, were pushed into August because Sept. 3 was the Labor Day holiday.

The Trump administration is forecasting that the deficit for the current budget year, which ends Sept. 30, will total $890 billion. That would represent a 33.7 percent increase from last year's deficit of $665.8 billion. It would be the largest deficit since an imbalance of $1.1 trillion in 2012.

While the 11-month total is already above the $890 billion mark, it is expected that September will show a small surplus given that so many September benefit payments were made early.

President Donald Trump won a major legislative victory when he got Congress to approve last December a tax cut of $1.5 trillion over the next decade, fulfilling a longtime Republican goal of cutting the corporate tax rate from 35 percent down to 21 percent.

The tax cuts, which also included reductions for individuals, began taking effect on Jan. 1 and have played a big role in reducing the growth in tax revenue this year.

So far this year, government revenue is up just 0.6 percent to $2.99 trillion. That reflects a 1 percent gain in individual taxes withheld from paychecks and a 20 percent drop in corporate tax payments.

Government outlays have far outpaced the small rise in revenues, increasing 6.7 percent to $3.88 trillion for the period October through August. The big spending increases include a 13 percent rise in interest payments on the public debt and an 8 percent rise in Social Security payments, reflecting the growing number of baby boomers who are retiring and a 9 percent rise in payments for Medicare, reflecting rising retirements and rising costs for medical care.

The Trump administration in July sharply boosted its deficit estimates compared to the projections it had made in February when it sent its 2019 budget to Congress. The administration now expects the deficit will top $1 trillion next year and remain above $1 trillion for three consecutive years.

The only other period when the federal government ran deficits above $1 trillion was for four years from 2009 through 2012 during the Obama administration when the government was using tax cuts and increased spending to combat the aftermath of the 2008 financial crisis and a deep recession.

  • Associated Categories: Associated Press (AP), AP Online Headlines - Washington, AP Online Congress News, AP Business, AP Business - Corporate News
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Trump claims Hurricane Maria death toll rose 'like magic'
President Donald Trump is rejecting the official death toll from Hurricane Maria in Puerto Rico
11:14PM ( 48 minutes ago )
The Latest: Pompeo blasts Kerry for Iran meetings
Former Secretary of State John Kerry has responded to President Donald Trump's criticism of his meeting with the Iranian foreign minister by telling the commander in chief he should instead focus on the special counsel's investigation
11:08PM ( 54 minutes ago )
The Latest: Forecast: Florence threat continues overnight
Tropical Storm Florence is crawling slowly across South Carolina as life-threatening storm surges and strong winds are expected to continue overnight; rising inland flood threat
11:03PM ( 59 minutes ago )
Associated Press (AP)
Mom of alleged MS-13 victim killed by SUV at girl's memorial
Grieving mother recognized by Trump in his campaign against deadly MS-13 gang violence is struck and killed by SUV after heated confrontation with the driver at her slain daughter's memorial
10:23PM ( 1 hour ago )
History-making runs turn black governor nominees into stars
The history-making gubernatorial runs by Stacey Abrams of Georgia, Andrew Gillum of Florida and Ben Jealous of Maryland are turning them into stars nationwide and at the Congressional Black Caucus annual legislative conference
10:22PM ( 1 hour ago )
Mom of alleged MS-13 victim killed by car at girl's memorial
A New York mother recognized by President Donald Trump at the State of the Union in his campaign against deadly MS-13 gang violence was struck by an SUV and killed at her slain daughter's memorial Friday after a heated confrontation with the driver
9:09PM ( 2 hours ago )
AP Online Headlines - Washington
Montana Green Party's ballot benefactor may remain unknown
Montana officials may never know who bankrolled the effort to qualify the Green Party for the 2018 ballot
5:50PM ( 6 hours ago )
Insurgent who won in NY says voters looked past distractions
A 27-year-old insurgent who defeated a veteran New York lawmaker after a bruising primary characterized by embarrassing revelations about her past said Friday that she won because voters were civically engaged and focused on the issues
5:43PM ( 6 hours ago )
Congressional race in southwest Washington draws spotlight
A congressional race in southwest Washington has drawn national attention
4:43PM ( 7 hours ago )
AP Online Congress News
The Latest: North Carolina city gets 23 inches of rain
One city in North Carolina has picked up more than 23 inches of rain in two days from Tropical Storm Florence
10:09PM ( 1 hour ago )
Everyone wants answers: State, feds hunt for gas blast cause
Investigators are working to pinpoint the cause of a series of fiery natural gas explosions that killed a teenager, injured at least 25 others and left dozens of homes in smoldering ruins
9:56PM ( 2 hours ago )
Ferocious typhoon plows through rain-soaked Philippines
Typhoon Mangkhut has slammed into the Philippines' northeastern coast with ferocious winds and blinding rain that ripped off tin roof sheets and knocked out power
9:56PM ( 2 hours ago )
AP Business
Met Opera to start Sunday performances in 2019-20
The Metropolitan Opera in New York City will start regular Sunday afternoon performances for the first time in its century-plus history during the 2019-20 season
5:32PM ( 6 hours ago )
US stock indexes turn lower on renewed trade concerns
US stocks are giving up an early gain and turning slightly lower after Bloomberg News reported that President Donald Trump wants to go ahead with new tariffs on imports from China.
2:45PM ( 9 hours ago )
$1.5M settlement for Muslim workers fired in prayer dispute
A U.S. meatpacker has agreed to pay $1.5 million to 138 Somali-American Muslim workers who were fired from their jobs at a Colorado plant after they were refused prayer breaks
1:06PM ( 10 hours ago )
AP Business - Corporate News
Trump claims Hurricane Maria death toll rose 'like magic'
President Donald Trump is rejecting the official death toll from Hurricane Maria in Puerto Rico
11:14PM ( 48 minutes ago )
The Latest: Pompeo blasts Kerry for Iran meetings
Former Secretary of State John Kerry has responded to President Donald Trump's criticism of his meeting with the Iranian foreign minister by telling the commander in chief he should instead focus on the special counsel's investigation
11:08PM ( 55 minutes ago )
The Latest: Forecast: Florence threat continues overnight
Tropical Storm Florence is crawling slowly across South Carolina as life-threatening storm surges and strong winds are expected to continue overnight; rising inland flood threat
11:03PM ( 1 hour ago )
The Latest: Trump claims Maria death toll rose 'like magic'
President Donald Trump is circling back to his claim that the death toll from Hurricane Maria last year was inflated and says the number rose to 3,000 "like magic."
10:45PM ( 1 hour ago )
The Latest: Downtown march protests man's police shooting
Dozens of demonstrators marched through the streets of downtown Dallas to protest a white police officer's fatal shooting of a black man in his own apartment
10:41PM ( 1 hour ago )