U.S. Will Borrow An Additional $1T To Pay For Trump’s Tax Cuts, And Spending

Mnuchin being sworn in at the Oval Office / Public Domain

This will be the second year that the U.S. government has to borrow $1T. This is driven largely by Trump’s tax cuts.

For the second year in a row, the Treasury Department will need to borrow $1 trillion to pay for the budget deficit, according to Axios. The growing deficit is a result of increased of increased government spending and decreased revenues due to Trump’s 2017 tax cuts.

During Obama’s first term as president, Treasury borrowing passed $1 trillion as the government fought to combat the 2008 financial crisis. The deficit has declined in the years since, settling to $519 billion in 2017. Last year, it nearly doubled.

see entire article here

Comments (11)
No. 1-6
Bor
Bor

Why would the US Government have to borrow it's own money?

Spritepixie
Spritepixie

The US Gov does not borrow currency only it can create. It moves currency from one treasury account to another treasury account and it's called "borrowing" because it's a throwback from the gold standard

berndtc
berndtc

Why does the Federal Govt. need $1 TRILLION when the economy is so strong and jobs are plentiful? Aren't all of the workers paying enough in taxes to cover this?

Billiver
Billiver

Guys, they don't just print more money. They issue Federal Treasury bonds, which are sold on the market. Currently, China and Japan hold almost 10% of US treasury bonds. We're paying the wealthy by borrowing from China! Under the past administration, we were paying off our debt, buying back bonds, and reducing the total debt. Under the current administration, we're increasing the debt at an alarming rate.

EJCasper
EJCasper

It's not borrowing it's "own money". See the comment a few before yours. We borrow from China.