According to Business Insider, the U.S. posted its largest one-month deficit in history for the month of February. The budget deficit was $234 billion, higher than the previous record of $231.7 billion in 2012. The astronomical deficit is due to recent legislative changes.
The deficit has been increased for two reasons. The first is Trump’s tax reform law, the Tax Cuts and Job Act (TCJA), which has caused revenues to drop. The second is a rise in spending following the bipartisan budget compromise form early 2018 and long-term programs.
For the full 2018 fiscal year, the budget deficit reached $779 billion, which is the highest since 2012, when the nation was recovering from the financial crisis. By 2022, the deficit is expected to top $1 trillion.
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