Trump’s personal and company tax cuts are blowing the budget big time. This month the American budget deficit hit $US895 billion, a 39 per cent jump on the same period last year. The independent Congressional Budget Office now reckons the deficit next year will reach $US1 trillion. That’s a year earlier than it had anticipated. For those who refrain that “tax cuts pay for themselves” it’s time to ignore the fiscal fairies and look at the reality that is the US budget disaster. Yes, spending has increased. That’s principally been in health where the US continues to pander to the private health sector while delivering some of the poorest health outcomes in the developed world. But revenue is not growing anywhere fast enough to cover the extra spending and neither is it growing faster enough to cover the cost of the tax cuts implemented by the Trump administration.
