White House Says Budget Deficit To Be $99B Higher This Year

[turbinetree]

Source: Talking Points Memo

By ANDREW TAYLOR Published JULY 15, 2017 10:01 AM
0Views
WASHINGTON (AP) — The White House says worsening tax revenues will cause the budget deficit to jump to $702 billion this year. That’s a $99 billion spike from what was predicted less than two months ago.

The report from the Office of Management and Budget comes on the heels of a rival Congressional Budget Office analysis that scuttled White House claims that its May budget, if implemented to the letter, would balance the federal ledger within 10 years. The OMB report doesn’t repeat that claim and instead provides just two years of updated projections.


The White House budget office also says the deficit for the 2018 budget year that starts on Oct. 1 will increase by $149 billion to $589 billion. But lawmakers are already working on spending bills that promise to boost that number even higher by adding to Trump’s Pentagon proposal and ignoring many of Trump’s cuts to domestic programs.

Last year’s deficit registered $585 billion.

Read more: http://talkingpointsmemo.com/news/white-house-budget-deficit-higher

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Amazing, you have companies that are short changing then treasury, and you have individuals that are short changing the treasury, and now there is a Congress, that wants to spend, money on the military, and fund conflicts on the credit card.

Anyone remember when this country had a surplus and it lasted only 1 year?

[ewagner]

1. "...worsening tax revenues will cause the budget deficit to jump to $702 billion this year. "

that phrase..."worsening tax revenues"....

could that mean?

results of tax cuts?

worsening of economy for middle class? (e.g. less income = less income taxes?)

[cstanleytech]

6. Probably a mix of all of the above. nt

[Igel]

10. There have been $99B in tax cuts?

When did *that* happen?

Note that the OMB doesn't take into account possible legislation, just what's already signed into law. It assumes all things will continue as they have been for the last year or so, however unlikely. About the only tax cuts that have taken effect since the Trumpacalypse was the edict not to worry about the additional tax penalties for not having insurance. I can't imagine that's a huge sum, relatively speaking.

If they meant "tax decreases" they'd probably have said it because they'd affect revenue expectations. But payments were below expectations in April, and phrased that way.

There's no good evidence for the middle class's doing worse. But federal income tax is progressive. It might just be that something's

In 2013, households making < $50k paid less than 6% of federal income taxes. $50k to 250k paid 43% or so. Those making more than $250k paid the rest, a bit less than 52% of federal income taxes. (These don't include FICA, but if we're talking budget deficit that's already excluding FICA anyway, so it's what you need to do for intelligibility.) http://www.pewresearch.org/fact-tank/2016/04/13/high-income-americans-pay-most-income-taxes-but-enough-to-be-fair/ Other sites give slightly different numbers, but you can't both have a progressive income tax and say that the higher levels of income don't pay more. We hide this by using the word "fair" (which is one of those things each person knows when he or she sees it, but really can't quantify with any precision--much reach an actual consensus on the meaning of "fair".)

It may be the common wisdom that households are finding ways to defer taxes or filing for extensions in hopes of a tax cut that's retroactive. That seems increasingly less likely, whatever the rhetoric each side feeds itself says.

It may be that corporations are deferring transferring monies into the US in hopes of some amnesty on offshore-held securities and cash. (Please, let's keep it paper-assets and not real assets. It's hard to transfer real assets.)

[Lyricalinklines]

14. Worsening due to increase of trumps spending...

...of tax revenue.

Bet all those secret service people who said they dreamed of spending weekends on the golf course never imagined it would be to babysi...er...watch trump.

[Yes, this is my sarcasm]

[packman]

2. Tax Shelters -

Close that law allowing companies to hide profits overseas .

Hey, the Repukes have been bragging since DonChetto got into office about the Wall Street rampage. Shouldn't that have generated some cash for the government ? - he asks naively.

[Igel]

11. There's no such law.

It is okay to "hide" income earned overseas overseas. Usually it's taxed there, in the country either in which it's earned or the country of incorporation.

A lot of the "profits" listed in the US press are assets. You earn $200 million in, oh, Tonga, and build a new factory there that costs $200 million you now have a new asset. You can't really repatriate that asset, but it's an asset. In the US you wouldn't pay taxes on the money spent because it's a business expense--you'd pay after you sold the plant and didn't reinvest the cash. But newspapers like to cite assets, not liquid assets, because it's more egregious and outrage = $. It also makes the reporters feel like they're crusaders and mini-messiahs, righting all the world's wrongs. Companies also like to have cash sitting in the bank in case of some problem or recession.

Stock value increases aren't taxable until the securities are sold. You have stock that goes from $1/share to $1000/share and you had 100,000 shares so your wealth goes from $1,000 to $1,000,000, that's not income and taxable until you sell. (And then you deduct any money you lost from having stock prices go down.)

[packman]

13. Correct - Thanks

I suppose I should have used the word "abuse"

[yallerdawg]

3. Clearest proof yet that we need to cut taxes on the wealthy and corporations.

[keithbvadu2]

17. Doesn't it also trickle down on Trump from Russian hookers?

[Iliyah]

4. GOPers are dismantling the USA's government and want to create

a conservative utopia which means depression heaven. They don't care.

[cstanleytech]

7. They might end up caring in about 20 or 30 years because people will only take

so much before they throw down their rulers and then said rulers heads end up on the pike or in a basket.

[Cryptoad]

5. The Party of Fiscal Conservatives,,,,,,,

[C_U_L8R]

8. Oops

Brought to you by Republicans, the so-called fiscally responsible ones. What a joke.

[keithbvadu2]

18. GOP whines about debt/deficits and here it goes again.

[n2doc]

9. And the House just passed a 700 billion dollar boondoggle of a Defense budget

Deficits only matter when it comes time to 'fix' Social Security and Medicare.....wait and see....

[jpak]

12. Obama's last deficit was $464 billion and dropping

Thanks GOP assholes

[no_hypocrisy]

15. I can fix that:

1. Eliminate the stipend for the Border Wall until . . . . never.
2. Slash Pentagon spending.
3. Raise taxes on corporate earnings.

[elmac]

16. it will only get worse

as the cons cut taxes for the rich. its the ameriKa 3rd world country wall street loves.

[lark]

19. Since PINO doesn't pay taxes, his minions think they too can get away with it.

drupf won't prosecute them, he's done the same thing perhaps for decades. Making illegality pay, just another way drumpf is destroying us.