Wider U.S. Budget Deficit in October Underscores Tax Cut Anxiety
U.S. fiscal deficit climbed to $63.2 billion last month from $45.8 billion a year earlier.
(Bloomberg) -- The monthly U.S. budget deficit increased by more than a third in October, highlighting concerns about proposed tax cuts that could further expand the fiscal gap.
The deficit climbed to $63.2 billion last month from $45.8 billion a year earlier, according to a Treasury Department statement released Monday. Receipts increased 6.2 percent to $235.3 billion, while spending climbed 11.6 percent to $298.6 billion. Part of the increase in spending was attributed to disaster-relief assistance after a disastrous hurricane season.
Some lawmakers are voicing concern about the deficit impact of proposed legislation to cut taxes that’s being debated by the House and Senate. The Trump administration is aiming for Congress to approve an overhaul of the tax code by December to take effect next year.
The Senate has approved a budget resolution that would allow a tax bill to raise the deficit by as much as $1.5 trillion over 10 years. Treasury Secretary Steven Mnuchin estimates the administration’s tax-cut plan will accelerate economic growth, which will increase revenue and reduce the budget deficit by $1 trillion.
--With assistance from Alexis Leondis
To contact the reporter on this story: Sarah McGregor in Washington at smcgregor5@bloomberg.net.
To contact the editors responsible for this story: Brendan Murray at brmurray@bloomberg.net, Randall Woods
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