Federal Government Sets Record for Red Ink in March
The federal government’s spending binge continues to set the kind of records that are best avoided.
The most recent: in the month of March, the government spent $660 billion more than it took in from taxes – making it the third biggest monthly deficit in U.S. History.
What caused the flood of red ink? It was…
…due primarily to the disbursal of tens of millions of $1,400 stimulus payments under Biden’s American Rescue Plan. Meanwhile, tax revenues stayed largely flat, with the government only collecting slightly more than last March.
Proving, once again, there’s no such thing as a free lunch:
Over the first six months of the current fiscal year, the government’s budget deficit has reached $1.7 trillion, a massive sum for this early in the year. America’s annual deficit hit $3.1 trillion in 2020, an all-time high that far surpassed the previous record of $1.4 trillion, which came in 2009 during the depths of the Great Recession. Democrats and Republicans authorized much of the emergency spending last year as a way to try and stop an economic collapse.
The Biden administration appears not to care very much about these numbers, or their implications for future generations of American taxpayers, having proposed a $1.5 trillion federal budget, a $2.25 trillion infrastructure plan, and possibly more.