In the largest federal deficit since 2013, the Treasury Department announced Friday that the deficit increased by $79 billion in fiscal year 2017, hitting the eerie number of $666 billion.
Treasury Secretary Steven Mnuchin explained in a statement, “Today’s budget results underscore the importance of achieving robust and sustained economic growth. Through a combination of tax reform and regulatory relief, this country can return to higher levels of GDP growth, helping to erase our fiscal deficit.”
Revenues for fiscal year 2017 were $3.32 trillion, while government spending totaled $3.98 trillion. Taxes and other revenues were down 0.4 percentage points, totaling 17.3 percent of the gross domestic product, and spending fell 0.2 percentage points, to 20.7 percent of the economy, according to the Treasury report.
During President Obama’s last year, “the deficit began to climb in dollar terms and relative to the economy, and has continued to do so throughout President Trump’s early tenure,” the Washington Examiner reported.
Democrats are claiming that the tax cuts proposed by the Trump administration (up to $1.5 trillion over the next 10 years) will only increase the deficit, but Republicans have stated that the new tax plan will create enough additional growth in the economy to offset the tax cuts, or possibly even increase the total tax revenues.
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