In response to the fiscal values recently released by the Treasury Department’s report, different media outlets highlighted the country’s deficit, which is valued at $867 billion so far in 2019.
Critics argue that the high fiscal spending figures were largely due to the Tax Cuts and Jobs Act, which was enacted in 2017 by the Trump administration and passed by the Republican majority, according to Newsweek magazine.
However, the high U.S. fiscal deficit is an issue that has been on the table for years, long before President Trump ran.
According to figures provided by the Congressional Budget Office (CBO), in 2014 the federal government recorded a total fiscal deficit of $492 billion and by then economic estimates indicated that the outlook for 2015-2024 would represent a fiscal deficit of $7.6 trillion.
In fact, the increase in spending since 2019 (which was 8%), as The Western Journal points out, includes assistance programs such as Social Security, Medicare, and Medicaid, which were implemented in past administrations.
Meanwhile, according to a recent report by Bloomberg, so far this fiscal year there has been a 3% increase in revenue. In other words, the tax cuts implemented by the Trump administration—contrary to what many media say—achieved an increase in revenue.
The tax cuts have led to the labor market continuing to grow. For the month of July there was an increase in the nonagricultural economy, reaching 164,000, while the unemployment rate remained at 3.7 percent as announced by the Bureau of Labor Statistics.
Data provided by the Center for Public Policy shows that so far in President Donald Trump’s term there has been a significant impact on unemployment, which fell to its lowest level in almost half a century, with 5 million new jobs created.
The Western Journal reported that when announcing the tax reduction law, President Trump quoted Democrat John F. Kennedy, who once said, “In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now.”
Indeed, according to CNS News, by 2018, the federal government managed to collect a record $1.6 trillion in individual income tax while at the same time implementing the tax cut.
Meanwhile, the Treasury Department’s report projects a similar scenario for 2019, taking into account revenues from the first 10 fiscal months.
While President Trump’s measures operate amid high cumulative fiscal costs inherited from previous administrations, tax cuts have boosted the economy by allowing more government revenue to be generated.