Corporate Taxes Are Down and the Deficit Is Up

The federal deficit is going up, up, up:

The federal budget deficit ballooned rapidly in the first four months of the fiscal year amid falling tax revenue and higher spending, the Treasury Department said Tuesday….The deficit grew 77 percent in the first four months of fiscal year 2019 compared with the same period one year before.

….Lawmakers enacted sweeping tax cuts at the end of 2017, and those changes continue to reduce revenue flowing to the Treasury Department. Tax revenue for October 2018 through January 2019 fell $19 billion, or 2 percent, Treasury said, though there were major reductions in the amount of money collected from businesses. Treasury found corporate tax payments over the first four months of the fiscal year dropped from from $75.5 billion to $58.9 billion, a fall of roughly 22 percent.

Ah, yes, “major reductions” in revenue from corporate taxes. Let’s take a look at that:

Sadly, it looks like those tax cuts didn’t pay for themselves. Yet again. Maybe next time.

In addition to falling revenue, the deficit has increased because of higher military spending and higher Medicare spending. The Medicare thing is sort of unexpected. Maybe I’ll take a closer look at that later today.

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THE TRUTH...

is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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