Candidate Donald Trump vowed to eliminate not just the budget deficit but the entire federal debt but President Donald Trump has instead seen the deficit skyrocket with 2019 projections pointing to historic shortfalls.
The White House Office of Management and Budget (OMB) revised its projection of the 2019 deficit to $1 trillion, the agency announced in its midyear review this week.
Just last week, the US Treasury released a report showing that the budget deficit skyrocketed by 23% in the first nine months of the current fiscal year, jumping from $607 billion last year to $747 billion from October through June.
The last time the US saw a $1 trillion deficit was amid the Great Recession, Axios reported.
Trump tax cuts driving deficit increase:
Republicans rejected previous projections that their 2017 tax cuts would add around $1.9 trillion to the deficit over the next decade but, lo and behold, that is exactly what appears to be happening, The Hill reported.
Spending also increased as a result of bipartisan budget deals, “in which Republicans sought massive increases in defense expenditures and Democrats sought equal increases on domestic priorities such as health care and education,” the outlet reported.
Trump vowed to eliminate the deficit & debt:
While Trump does not mention the deficit and debt much these days, he frequently attacked President Obama over the issue and as candidate vowed to eliminate not just the budget deficit but the entire $22 trillion debt.
Trump told The Washington Post in 2016 that he would eliminate the entire debt “over a period of eight years.”
“Most economists would consider this impossible because it could require taking more than $2 trillion a year out of the annual $4 trillion budget to pay off holders of the debt,” The Post noted, but Trump disagreed.
“I’m renegotiating all of our deals, the big trade deals that we’re doing so badly on. With China, $505 billion this year in trade,” he said.
It’s true that Trump’s tariffs on China have added about $21 billion in revenue, but that number is $28 billion short of the bailouts Trump promised to farmers hit hardest by his trade wars, not to mention that other industries that have lost billions as a result of his policies.