Why Is the US Deficit So Big? Depends on Who You Ask
Democrats say it’s the Trump-era tax cuts, while Republicans blame Biden’s spending.
The US is on track to run its largest federal deficit outside of crisis times such as the Covid-19 pandemic, the global financial meltdown and World War II. The extra-large shortfall is more fuel for the election year blame game in Washington, with Republicans decrying out-of-control Democratic spending and Democrats retorting that the culprit is Republican tax cuts that have shriveled revenue.
The deficit for the fiscal year ending on Sept. 30 will amount to almost $1.9 trillion, equal to 6.6% of gross domestic product, according to projections released Friday from the US Office of Management and Budget, which is an arm of the White House. Estimates from the nonpartisan Congressional Budget Office put the gap at an even wider 6.7%.