Thursday, July 26, 2018
Why Will The US Budget Deficit Hit $1 Trillion?
If a business suffers a steep decline in revenue it must find a way to increase its revenue or borrow money. The US Treasury faces that problem today. It made huge cuts to corporate taxes and it made other changes in corporate expense accounting which has been great for corporate profits and for shareholders. However, the tax cuts have not produced the economic growth that was supposed to compensate for the corporate tax cuts as promised by the Trump administration. Some in the administration still argue that the economic growth it promised is still coming. On the other hand, several economic forecasters don't believe that will happen. They expect US budget deficits will continue to grow in response to the huge drop in corporate tax payments.