US government spending triggers large-scale budget deficit

The US budget deficit continues growing, causing more concern for Congress and other governmental bodies.

The White House had planned to restore budget balance by introducing more taxes and cutting funding for government programs. The two strategies have been successful, although they do not reduce costs much.

A recent report from the US Treasury said that the spending of the US government from November 2014 to July 2015 exceeded revenues: 2 trillion 760 billion 301 million dollars were spent, whereas 2 trillion 446 billion 920 million dollars were collected by tax revenues. As a result, deficit of 313 billion 381 million dollars has appeared.

Also read: USA squandering money?

Taxes in the United States have increased from 2012, when President Barack Obama sand representatives of the Republican Party signed an agreement to increase the upper threshold of the tax rate to 39.6%. The capital profit rate increased to 20%, and many Americans, whose annual income makes up at least 250,000 dollars, lost their benefits.


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Author`s name: Editorial Team