On Wednesday, the Congressional Budget Office said that the federal deficit will reach $960 billion for the 2019 fiscal year, which ends September 30, and breach the $1 trillion mark in 2020. Previously those figures were expected to come in at $896 billion and $892 billion, respectively, but the damage from the president’s tariffs, along with a sharp falloff in revenue thanks to the 2017 tax cuts, have caused deficit projections to rise faster than expected. Incredibly, this is all happening against the backdrop of the longest economic expansion on record and the lowest jobless rate in 50 years, conditions that typically cause the budget deficit to shrink. And under the continued tutelage of Donald Trump, the New York Times reports, things are only expected to get worse:
. . .But while the nonpartisan CBO has placed the blame squarely on things like the trade war and tax cuts, Republicans—the ones who spent eight years under Obama screaming about fiscal responsibility and bankrupting our grandchildren—have an idea for how to deal with the situation that doesn’t involve taking tax cuts away from the wealthy or reeling in Tariff Man:
. . .
While Republicans do not expect Trump to push for cuts while campaigning for reelection, they’ve apparently encouraged him to do so should he win a second term—a proposition to which President “I’m not going to cut Social Security, I’m not going to cut Medicare” has reportedly been receptive. “We’ve got to fix that,” Senator John Thune, the number two Republican in the Senate, told the Times. “It’s going to take presidential leadership to do that, and it’s going to take courage by the Congress to make some hard votes. We can’t keep kicking the can down the road. I hope in a second term, he is interested,” Thune said of Trump. “With his leadership, I think we could start dealing with that crisis. And it is a crisis.” Republicans, said Senator John Barrasso, who seems to regularly chat with the president, have “brought it up with President Trump, who has talked about it being a second-term project.”
House GOP 2019 Budget Calls For Deep Medicare, Medicaid Spending Cuts
