CBO: Higher Taxes Lead to Smaller Deficit, Despite Spending Growth
(Washington, D.C.) – According to the most recent Monthly Budget Review from the Congressional Budget Office (CBO), the federal deficit will be approximately $500 billion this year, an increase over what CBO previously projected. While this represents a significant reduction from last year, the Obama Administration would still have recorded the 6 highest one-year deficits in U.S. history. The national debt has grown by over $7 trillion since President Obama assumed office.
The CBO notes that federal tax revenues have increased by 8 percent in the last year, while spending grew by 1 percent. This makes clear that while the deficit has been reduced, it is entirely due to tax increases – and not spending reduction. Furthermore, it is expected that the annual deficit will begin growing again in the years ahead.
Daniel Garza, Executive Director of The LIBRE Initiative released, the following statement:
“Despite the rhetoric coming out of Washington, spending continues to increase and taxes continue to rise even faster. While this has led to a temporary reduction in the deficit – to levels that are still historic – the economy will not enjoy real and sustained growth until Washington begins to rein in spending and curb unnecessary regulation.
Washington has added $7 trillion in debt over just the last 6 years. That flood of spending and borrowing is unprecedented in American history. It’s wrong to pass this legacy along to our children and grandchildren. It’s time for fiscal discipline.”