The news comes as Trump says he's considering tax cuts, a move that would likely further raise the deficit, and a massive bipartisan budget deal struck between Congress and the president that increases spending.
This fiscal year, which ends September 30, will see a deficit of about $960 billion, a figure that CBO says will likely climb to at least $1 trillion for fiscal year 2020. Previously, the non-partisan federal agency that provides budget and economic information to Congress forecasted the deficit to be $896 billion for 2019 and $892 billion for 2020.
The news of a deficit that is ballooning faster than expected comes amid President Donald Trump's consideration—and then reversal—to implement payroll and capital gains tax cuts, a clear sign that, despite rhetoric from Trump himself and senior administration officials, the White House is concerned about the possibility of a recession in the near future. The move would almost certainly further raise the deficit.
However, Trump backtracked Wednesday, stating he's"not looking at a tax cut now. We don't need it. We've got a strong economy." The remarks were a complete reversal from comments he made to reporters less than 24 hours earlier, where he said he's"been thinking about payroll taxes for a long time." President Donald Trump speaks at a"Keep America Great" campaign rally at the SNHU Arena in Manchester, New Hampshire, on August 15.between Congress and the Trump administration earlier this month that will increase the deficit by raising military and other spending by hundreds of billions of dollars over the next two years, in addition to Trump's 2017 tax cuts having an impact on federal revenue.
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