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The Trump administration and congressional Republicans pledged their commitment to fiscal discipline, as they passed a tax law that was expected to drastically deepen budget deficits last year and then allow for increased spending. In a statement, Mulvaney claimed that "the booming economy of the United States will result in increased government revenue," an argument the GOP has repeatedly called for in its tax plan.
"But this fiscal situation is a brutal warning to Congress of the disastrous consequences of irresponsible and unnecessary spending," he added. "In the future, President Trump and this administration will continue to work with Congress to make the difficult choices necessary to introduce budget cuts, which, combined with increased revenues, will reduce our deficit."
Several independent analyzes have estimated that the GOP's fiscal plan would lead to dramatic growth in budget deficits over time, even after economic growth has been taken into account.
The Trump administration has proposed significantly reducing the spending of several government agencies to reduce deficits. Even many Republicans have rejected the severity of the proposed budget cuts.
The Treasury noted that revenues related to "excise, customs and other" had jumped to $ 35 billion in September 2018, an increase of 35% over the same period of the year former. It is not known how much of this revenue is tied to Trump's tariffs on imports from major trading partners.
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