• Treasury Department report reveals that US government spending has outpaced revenue, resulting in a budget deficit of $1.392 trillion for the 2023 fiscal year.
• Credit rating agency Fitch has placed the US on negative watch due to its fiscal and debt trajectories.
• Former Treasury Secretary Larry Summers believes taxes will need to be substantially raised to cover America’s increasing deficit.
US Deficit Surpasses $1 Trillion
The US government’s spending is now exceeding its revenues by over a trillion dollars just eight months into the current fiscal year, according to a newly released Treasury Department report which tracks the government’s receipts and expenses for the 2023 fiscal year (October 1st, 2022 – September 30th, 2023). This surge in deficit has increased 170% from the same time frame in the previous year.
Fitch Places US On Negative Watch
Rating agency Fitch says that while the United States continues to maintain a credit rating of “AAA,” it is currently on negative watch due to its fiscal and debt trajectories. The agency noted that some of these strengths could be eroded over time by governance shortcomings.
Former Treasury Secretary Weighs In
Former Treasury Secretary Larry Summers recently weighed in on America’s deficit, saying he believes the government will have very little choice but to substantially raise taxes to cover its increasing deficit.
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