The federal budget deficit hit $867 billion for the first 10 months of the fiscal year, the Treasury Department reported Monday.
The deficit, which represents the difference between spending and revenues, is set to exceed $1 trillion for the current fiscal year. The deficit for fiscal year 2018 was $779 billion, which was the largest shortfall since 2012.
The deficit has swelled despite the government having taken in $100 billion more in revenue this year than last year. Spending by the government exceed last year’s level by $280 billion.
The Treasury reported that corporate income tax revenue has totaled $171 billion so far this fiscal year, up $5 billion from last year’s level. That was despite the 2017 Tax Cuts and Jobs Act setting the corporate rate at a flat 21%, down from a top rate of 35%. Income tax receipts totaled $1.43 billion, an increase of about $15 billion.
Federal revenue from customs duties has totaled $57 billion so far this year, up from $32 billion at this point last year, following the administration placing tariffs of 25% on about $250 billion worth of Chinese goods, half of all goods imported from the country. The $25 billion increase just about matches the $26 billion in aid that the Trump administration has promised in 2018 and 2019 to the farm industry to protect it from losses as consequence of the tariffs.
