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Economy

Government Reaches Third-Largest Monthly Deficit Ever Recorded

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Joe Biden

The Biden administration is on a roll breaking record after record. First, the largest number of migrants attempting to illegally enter the U.S. on the Southern border in over 15 years, and now the largest monthly deficit. “The U.S. government’s budget deficit ballooned to $660 billion in March, marking a 454% increase compared to last year and the third-largest monthly deficit ever recorded” reports Biz Pac Review.

In March, with a revenue of only $268 billion, the federal government spent $927 billion, said Treasury Department officials. “The U.S. deficit for the first six months of fiscal year 2021, which began in October, reached a massive $1.7 trillion.”

Biz Pac Review reports the deficit is largely caused by the Democrats’ $1.9 trillion coronavirus stimulus package signed into law in March. The Bipartisan Policy Center released a statement Monday saying, “unemployment insurance, refundable tax credits, and the Small Business Administration’s Paycheck Protection Program accounted for most of the increase – both from March to March and from last fiscal year to this one.”

The deficit is on track to surpass the $3.1 trillion annual deficit record set last year. The third-biggest annual deficit occurred during the Great Recession in 2009 when U.S. spending surpassed revenue by $1.4 trillion. In an interview with CBS News on Sunday, Federal Reserve Chair Jerome Powell stated the federal debt is currently on an “unsustainable” path.

President Joe Biden has focused on revamping the nation’s infrastructure, causing severe disagreement along party lines. Biden plans on passing his $2 trillion infrastructure plan claiming it will create millions of new jobs, arguing that increasing the corporate tax rate from 21% to 28% will pay for the expensive plan.

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4 Comments

4 Comments

  1. Jim

    April 13, 2021 at 5:01 pm

    What a Tool!

  2. Bill Whitehead

    April 14, 2021 at 10:15 am

    Prepare now for the coming crash! We are headed for bankruptcy thanks to wasteful, partisan spending by both parties but mostly Democraps.
    So, when hyperinflation starts dont forget to thank Joe and all Congress for it!

  3. Pano

    April 19, 2021 at 8:17 am

    President Magoo and his traveling circus are really going out of their way to destroy America!!!

  4. Jamie W

    April 19, 2021 at 6:28 pm

    They’re counting on The Great Reset

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Economy

Inflation Spiked 7% Past Year, Highest Since 1982

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With a 7% spike from last year, inflation has increased at its fastest pace in 40 years. On Wednesday, the labor department reported its measure of inflation “that excludes volatile food and gas prices jumped 5.5% in December, the fastest such increase since 1991. Inflation rose 0.5% overall from November, down from 0.8% the previous month” reports the Associated Press.

National Review reports “the consumer price index, a major inflation gauge, for all items surged 0.5 percent for the month and 7.0 percent for the last twelve months ending in December, representing the largest annual spike since June 1982, when inflation hit 7.1 percent.”

Housing prices and used cars and trucks contributed the most weight to the all items surge. But prices for cars, gas, food and furniture all rose sharply as part of a rapid recovery from the pandemic recession, “that was fueled by vast infusions of government aid and emergency intervention by the Fed, which slashed interest rates.”

Federal Reserve Chair Jerome Powell testified before the Senate Committee on Banking, Housing, and Urban Affairs Tuesday, warning monetary policy is constrained in its power to curb inflation by the current “era of persistently low interest rates.” Ordinarily, the Fed can hike rates to slow down an overheating economy.

“Recovering from the pandemic, the economy has rebounded well but a bit too fast for many moving parts to catch up to, Powell noted, as supply chains still struggle to meet demand across consumer sectors, resulting in inventory shortages on store shelves and prolonged shipping delays” reports National Review.

“The economy has rapidly gained strength despite the ongoing pandemic, giving rise to persistent supply and demand imbalances and bottlenecks, and thus to elevated inflation. We know that high inflation exacts a toll, particularly for those less able to meet the higher costs of essentials like food, housing, and transportation,” said Powell.

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Economy

Federal Debt Equals Roughly $287,859 Per Income-Tax-Paying Household

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National Debt Clock
National Debt Clock

The Biden administration wants to increase any taxes they can get their grubby hands-on, and CNS News explains why: because they need it. In an analysis, CNS writes about how as Congress “worked in recent days to increase the legal limit on the federal debt, the Treasury kept that debt artificially frozen at approximately $28.9 trillion, where it stood at the beginning of this week.”

With the limit lifted, the federal debt will increase, “then keep steadily climbing, constantly increasing the burden on future taxpayers.” Here’s the analysis:

In 2018, according to the last complete annual report on individual income tax returns published by the Internal Revenue Service, there were 100,424,240 households in the United States that filed what the IRS calls a “taxable return.” “The taxable and nontaxable classification of a return for this report is determined by the presence of ‘total income tax,'” explained the IRS.

“‘Total income tax,'” it said, “was the sum of income tax after credits.”

In other words, the 100,424,240 households that filed a “taxable return” in 2018 actually paid income taxes to the federal government.

If you divide the $28,908,004,857,445 in debt that the federal government owed before the debt limit was liftedby the 100,424,240 American households that paid net income taxes in 2018, it works out to approximately $287,859 per income-tax-paying household.

In order to understand the magnitude of what this means, CNS compares numbers to 1989:

The year that President Ronald Reagan left office, there were 89,178,355 income-tax-paying households in the United States, according to the IRS. At the end of January that year, the federal debt was $2,697,957,000,000.

That means the federal debt then equaled approximately $30,253 per income-tax-paying household.

Even when the January 1989 federal debt of $30,253 per income-tax-paying household is adjusted into November 2021 dollars (using the Bureau of Labor Statistics inflation calculator), it equals only approximately $69,437.

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