From Seattletimes · · 1m 30s
What's driving federal debt and who's to blame
Federal debt growth stems from Medicare, Medicaid, ACA subsidies and Social Security spending, with tax cuts adding 30% of the deficit.
In brief
Federal debt growth stems from Medicare, Medicaid, ACA subsidies and Social Security spending, with tax cuts adding 30% of the deficit. The federal deficit is driven by spending growth in Medicare, Medicaid, ACA subsidies, and Social Security, with tax cuts contributing 30%. Originally reported by Seattletimes.
Federal debt growth
The federal government spends more than it collects in revenue, causing a red ink problem.
Spending growth drives debt
Nearly three-quarters of federal debt comes from spending growth in Medicare, Medicaid, ACA subsidies, and Social Security.
Tax cuts add 30% deficit
The One Big Beautiful Bill Act and 2019 tax cuts contributed 30% of the deficit through tax reductions.
Two periods of deficit growth
87% of deficit growth happened in two periods: 1965-1972 and 2010-present, with only 13% from intervening years.
Legislative hubris in 1965-1972
Medicare and Medicaid were created in 1965, followed by expansions of both programs and Social Security in the early 1970s.
Recent deficit drivers
Medicaid and ACA spending growth, Medicare, Social Security, veterans' benefits, and military retirement spending drive the deficit.
Presidential vs. congressional blame
65% of deficit growth was enacted during Democratic control, 29% during Republican control, and 6% under split control.
Current president's role
President Donald Trump is the biggest contributor to deficit growth due to tax cuts enacted during his two terms.
The one thing
The federal deficit is driven by spending growth in Medicare, Medicaid, ACA subsidies, and Social Security, with tax cuts contributing 30%.
