(CNSNews.com) - The federal government taxed more, spent more, and ran a bigger deficit in the first two months of fiscal 2016 than it did in the first two months of fiscal 2015, according estimates the CBO published yesterday.
The federal fiscal year begins on Oct. 1 and ends on Sept. 30.
The increase in federal spending in the first two months of fiscal 2016 was largely driven by increased expenditures on Social Security, Medicare and Medicaid. The increase in taxation was driven by increases in individual income tax and payroll tax payments.
“The federal budget deficit was $200 billion for the first two months of fiscal year 2016, the Congressional Budget Office estimates,” said the report. “That deficit was $22 billion larger than the one recorded during the same period last year. Revenues and outlays were both higher than last year’s amounts, by 3 percent and 6 percent, respectively.”
“Receipts through November totaled $416 billion, CBO estimates—$12 billion more than the amount for the same period last year,” said the report.
“Individual income taxes and payroll (social insurance) taxes together rose by $19 billion (or 6 percent),” said CBO. “Increases in amounts withheld from workers’ paychecks—$16 billion (or 5 percent)—accounted for the bulk of that gain. Total wage and salary income and withheld taxes have both grown at about that same rate in recent quarters.”
Part of the increase in spending, CBO said, was the result of the increase in Medicaid built into Obamacare.
“Outlays for the first two months of fiscal year 2016 were $616 billion, or $34 billion higher than they were during the same period last year, CBO estimates,” said CBO.
“Outlays for the three largest mandatory programs increased by 7 percent,” said the report. “Social Security benefits rose by $7 billion (or 5 percent), reflecting typical recent growth in the number of beneficiaries and their average benefits.
“Medicare spending increased by $8 billion (or 9 percent), some of which reflects the fact that the payment made to prescription drug plans each fall to account for unanticipated spending increases in the preceding calendar year was larger in 2015 than in 2014,” said the report.
“Outlays for Medicaid rose by $6 billion (or 12 percent), largely because of new enrollees added through the optional expansion of coverage authorized by the Affordable Care Act,” said CBO.
As of the close of business on Friday, Dec. 4, the total federal debt was $18,786,830,545,682.60, according to the U.S. Treasury.
The Census Bureau says that there were 117,748,000 households in the United States as of September. Thus, the $18,786,830,545,682.60 in federal debt equals approximately $159,551.16 for each household in the United States.