Deficit Moderates Thanks to Tax Increases
Debt Keeps Rising as Spending Increases
(Washington, D.C.) – According to data released today by the U.S. Treasury, the federal deficit for the month of August was $129 billion. The Treasury reports that the total deficit for the year so far is $589 billion – a reduction of 22 percent from last year – but still among the highest single-year deficits in U.S. history. The reduction is largely due to tax increases – with revenues increasing by 7.7 percent – even as spending increased again overall. Furthermore, while the amount borrowed by the federal government will be less this year than last year, Washington continues to borrow hundreds of billions every year, adding to a debt burden that is approaching $18 trillion.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
"Last year, this administration pushed through Congress a tax increase of more than $600 billion, which raised taxes for 77 percent of American households. The president said that these tax increases would be matched by 'new spending cuts' to bring down the deficit. Now taxes and spending are both up, and some in Washington are still calling for more tax increases. This broken promise must be corrected, in order to ease the burden on hard working middle class families and start-up businesses struggling to keep their doors open.
It is time for fiscal discipline. It's time to rein in spending. The American people understand that until Washington gets its fiscal house in order, it will be impossible to balance the budget and grow the economy on a consistent basis. Instead of increasing spending and adding to our national debt, leaders should focus on cutting spending and reducing the tax and regulatory burden that is inhibiting growth."