Federal Spending and Deficit Set Records Through June
One can argue that spending should be up now because of the Virus and the associated lockdowns. But that highlights the importance of deficit spending not being the default mode in the federal budget. At some point the debt is going to crash the economy and perhaps the USD.
And this doesn't account for state and local spending. Government entities that cannot deficit spend. As we see with our thread on California - states are on the brink.
Note the amount collected in tax revenues - this is very high and not a low number because of tax cuts. Next note the money spent. Well over what was collected. Spending is the problem, not tax revenue.The federal government set records for both the amount of money it spent and the deficit it ran in the first nine months of fiscal 2020 (October through June), according to data released today in the Monthly Treasury Statement.
During the October-June period, the government spent a record $5,004,372,000,000 while it collected $2,260,069,000,000 in total taxes.