The 2018 federal deficit grew — surprise, surprise — because the federal government spent more money and revenues were flat due to tax cuts, not down mind you, but flat, according to The Wall Street Journal.
“Government receipts held steady at $3.3 trillion, despite strong economic growth and a robust labor market. …” WSJ reported. “But individual withheld income taxes rose just 1% in fiscal 2018, and corporate tax receipts declined 31% — both reflecting changes implemented as part of the sweeping tax overhaul enacted in December.”
But spending rose 3 percent overall. Increases in interest rates on the federal debt drove up spending by 14 percent, while defense spending increased 6 percent and Social Security costs rose 4 percent.
So, the deficit is not entirely due to the tax cuts, as the Democrats will scream.