The federal government ran a deficit of $3.1 trillion in fiscal year 2020, more than triple the deficit for fiscal year 2019. This years deficit amounted to 15.2% of GDP, the greatest deficit as a share of the economy since 1945. FY2020 was the fifth year in a row that the deficit as a share of the economy grew. Revenues in FY2020 fell 1% from last year, while outlays surged 47%.
The FY2020 budget splits into two distinct halves: before and after COVID-19 and its economic fallout. In the first six months of the fiscal year (October through March), the deficit was running 8% above last years rate; in the last six months (April through September), the deficit soared to eight times its level in those months last year.
Through March, revenues had been running 6% above FY2019, propelled by higher wages and salaries that raised individual and payroll tax receipts. In April through September, however, revenues dipped 7% below their rate from the second half of FY2019, pulled down by the loss of economic activity and legislation enacted in response to the crisis. This second-half pattern of revenues dragged down by economic losses and policy changes was present across many types of revenue. Withheld income and payroll taxes fell 8%because of a weaker economy, with fewer jobs and lower wages; and because of policy changes, which allowed employers to defer payroll tax payments and created refundable payroll tax credits for paid sick leave, family and medical leave, and employee retention. Nonwithheld income and payroll taxes also fell 7%, while corporate income taxes fell by 21%. Both of these declines were the sum of economic losses and legislative changes to lower tax burdens.
It was passed by the Senate without the majority of them even reading it. So that's all on them. They wanted to give more money to corporations. ---