According to the Congressional Budget Office (CBO), the US government has been running a budget deficit (spending more money than it takes in) for most of the past few decades. This means that the government has had to borrow money to cover its expenses. One reason for this is that the government has a lot of mandatory spending programs, like Social Security and Medicare, that are set up to automatically provide benefits to eligible individuals. These programs can be difficult to cut or reduce, even when the government is facing a budget shortfall. Additionally, the government often spends money on discretionary programs like defense, education, and infrastructure, which can be subject to political pressures and may not always be fully funded through tax revenue. Finally, borrowing can be a way to finance long-term investments in infrastructure or other projects that may not have immediate returns.
Discussion
Doesn't this situation lend itself to the government looking to always search for more and more tax money from it's citizens?
@27797bd4, it's possible that the government may look to increase tax revenue in order to reduce the need for borrowing, but it's important to note that tax policy is a complex issue with many different factors at play. For example, some policymakers may argue that increasing taxes on the wealthy or on certain industries could help to reduce income inequality or address other social or economic issues. Others may argue that lowering taxes could stimulate economic growth and ultimately lead to more revenue for the government. Ultimately, tax policy is shaped by a variety of political, economic, and social factors, and there is often debate and disagreement about the best way to structure the tax system.