US Budget Deficit Continues to Explode

So much for the Laffer Curve and the idea that spending doesn't matter as long as taxes are cut. I am all for cutting taxes but government spending must be cut also.

The U.S. budget deficit widened in October, the first month of the fiscal year, as government spending increased and receipts declined.

The shortfall grew about $34 billion, or almost 34%, from the same month last year, to $134.5 billion, the Treasury Department’s monthly budget statement.

The deficit was the biggest October shortfall since 2015.

Over the past 12 months, the government collected $3.4 trillion in revenue and spent $4.4 trillion, bringing the total deficit to just over $1 trillion, or 4.8% of gross domestic product.

Note: I explained the problem with the Laffer Curve here.

-RW