Anonymous
Anonymous asked in Politics & GovernmentPolitics · 2 years ago

Is deficit caused by spending? Or if I increase spending the same amount as I increase taxes, doe that do it?

Update:

I'm puzzled as to why Republicans are so unclear on what causes us to borrow. It's them thinking they get something (Republicans will NEVER cut spending at federal level, until they get intelligence and courage.) for LESS THAN NOTHING (a tax cut).

The $288,000,000,000 we paid in interest in 2017 comes to $1,900 for every federal taxpayer that pays more than they receive, only because rates are very LOW, now.

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  • 2 years ago

    The deficit being so big is increasing for the interest. It cost money to run a country, that is what taxes pay for.

    Appropriations decide where tax dollars go, Over budget, then borrowing is needed. Funny that hasn't happened under Trump.

    For the improving economy, there is plenty to run government, even some to pay down the deficit a bit. that clock is slowing in spite of tax cuts and some departments getting larger chunks of the change.

    This recent NATO issue will save Americans yet another 500 million a year.

    Just read an article about June just short of a record for vacationing. We must be doing OK if so many can afford vacations.

    Check your figures, you show the deficit about 100 trillion higher than is real. 19.8 trillion is adjusted current deficit.

    76% of 2016.

  • Anonymous
    2 years ago

    Its a combination of spending and cutting taxes. Just like family debt...it will go up with increased spending, but will also go up if income is reduced and the bread winner starts earning less so cannot pay the bills.

  • 2 years ago

    Yea

  • Anonymous
    2 years ago

    Spending is the culprit regardless. We need to stop.

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  • Anonymous
    2 years ago

    No, any more it is about compounding interest on it more than anything else. I can't remember the government agency that pointed it out, but for everything paid for a deficit like it, 2/3 are for paying the actual debt, where one full 3rd is for paying the compounding interest for it. And that just makes for it all to be a capitalism financial rape faith thing above all else.

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