Budget Deficit To Break $1 Trillion Despite Strong Economy

The Capitol is seen as defense arguments by the Republicans resume in the impeachment trial of President Donald Trump on charges of abuse of power and obstruction of Congress, in Washington, Monday, Jan. 27, 2020. (AP Photo/J. Scott Applewhite)

(AP) — An annual congressional report says that the U.S. budget deficit is likely to burst through the symbolic $1 trillion barrier this year despite a healthy economy.

The Congressional Budget Office report follows a burst of new spending last year and the repeal in December of several taxes used to help finance the Affordable Care Act.

Those have combined to deepen the government’s deficit spiral well on into the future, with trillion-dollar deficits likely for as far as the eye can see.

The annual CBO update government’s economic and fiscal health estimates a $1 trillion deficit for the ongoing fiscal year.

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