OMG! #Socialites get into this! It’s being reported that for the first time ever, the U.S. national debt has reached a new all-time high record of $33 trillion days before a potential government shutdown over funding.
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Less than two weeks before the federal government faces a potential shutdown over a lack of funding authorization, the national debt in the U.S. has reached a historic milestone as it passes $33 trillion for the first time ever.
According to the Treasury Department, they revealed that the debt, which equals the amount of money borrowed by the federal government to cover operation expenses, hit $33.04 trillion on Monday (September 18). What contributed to it? Well, the department said that an estimated 50 percent increase in federal spending between fiscal 2019 and fiscal 2021 helped the national debt reach over $33 trillion.
Additionally, tax cuts, stimulus programs, and decreased tax revenue (all due to the widespread unemployment during the COVID-19 pandemic) were also listed as factors that helped drive the government to borrow more and more funding.
Now, with this new U.S. national debt milestone, it is reported that this issue is now at the center of a standstill in Congress, as they have been discussing a spending bill that would sustain the government until the next funding cycle comes around.
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If Congress doesn’t agree on terms and pass a spending bill to fund the government by September 30, 2023, then the nation will experience its latest government shutdown. The United States last faced one in 2019. But, we will face another shutdown, unless Congress can pass a dozen appropriations bills or agree to a short-term extension of federal funding at existing levels.
Meanwhile, it’s said that Republican lawmakers are pushing for less spending as the Democrats support President Joe Biden‘s programs, like the Inflation Reduction Act, which is estimated to cost more than $1 trillion over the next decade, per a budget model produced by the University of Pennsylvania.
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According to NBC News, the House Republicans released their own bill on Sunday (September 17) to fund the government until October 31, in exchange for an 8 percent cut to domestic programs, minus those for national security.
However, that bill is reportedly not expected to pass the Democrat-controlled Senate. According to Michael Kikukawa, a White House assistant press secretary, the national debt increase was driven by trillions of dollars in Republican tax cuts skewed to the wealthy and big corporations” over the past 20 years.
Kikukawa added, “Congressional Republicans want to double down on trickle-down by extending President Donald Trump’s tax cuts and repealing President Biden’s corporate tax reforms.” Kikukawa also said that with Biden’s proposed policies, he’s pushing for the wealthy and big corporations to pay their fair share in taxes, and to cut subsidies in oil and pharmaceutical companies in order to reduce deficits by $2.5 trillion … if approved.
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