From Al Gore's www...
Three Reasons for the Current Budget Deficit
Most people blame the deficits on entitlement programs. But that's only half the story. These enormous deficits are the result of three factors.
First, the
attacks on 9/11 led to the
War on Terror. That almost doubled annual
military spending.
The Trump administration will set new records of defense spending. It is estimated to reach $874.4 billion in FY 2018 and $886 billion in FY 2019. Trump wants the additional funding to fight ISIS. Congress also granted a two-year reprieve from
sequestration for military spending.
Second, mandatory spending has increased. That means benefit payouts for
Social Security, Medicare, and other mandated programs. It's exceeded $2 trillion a year since FY 2011. These payments consume two-thirds of the revenue each year. Only an Act of Congress that amends a program's benefits can change them.
Third, the
Trump tax cut will reduce revenue. It's reducing the personal income tax rate, corporate taxes, and small business taxes. These cuts total $1.5 trillion over the next 10 years. But the
Joint Committee on Taxation said the cuts will stimulate growth by 0.7 percent annually. The increased growth will add revenue, offsetting some of the tax cuts. As a result, the deficit will increase $1 trillion over the next decade.
Obama declared the war on ISIS over (it ain't)...so Trump needs to close that deal. The second item is off the table. The third item may have some arguments that the Dims could make, as we keep hearing they want their crumbs back.
