The Washington-based nation is reporting a $665 billion loss for 2017 on $3.3 trillion in revenue, compared with a $585 billion loss on $3.3 trillion in revenue for 2016.
The U.S. government functions as a conglomerate in which the core health and retirement benefits programs accounted for about 48% of spending in 2017. Those programs also accounted for about 48% of spending in 2016.
(Related: Social Security Trust Funds Post Higher Gain)
Total U.S. outlays increased 3.3% between 2016 and 2017, to about $4 trillion.
Total U.S. revenue increased just 1.5%.
Revenue from the United States’ core individual income tax, corporate income tax, Social Security tax, Medicare tax and estate and gift tax programs increased 3.1%, to $3 trillion.
Growth in Social Security tax and estate tax revenue was especially strong: Social Security payroll tax revenue increased 5.1%, to $851 billion, and estate and gift tax revenue jumped 9.5%, to $23 billion.
But the Federal Reserve System contributed just $81 billion in earnings to the U.S. Treasury in 2017, down about 30%, from $116 billion, in 2016.
The United States as a whole generated about $19.4 trillion in “gross domestic product” (GDP), or national income, for 2017, up from $18.6 trillion in 2016.
Because of the Fed’s drop in earnings, the deficit amounted to 3.4% of GDP in 2017, up from 3.1% of GDP in 2016.
If the Fed had done as well in 2017 as in 2016, the deficit would have increased only slightly, to 3.2% of GDP.
The U.S. government released its 2017 results together with budget proposal for fiscal year 2019, which starts Oct. 1.
Officials have provided estimates for the federal government’s 2018 results, along with projections for 2019.
The 2019 budget proposal shows that, between 2018 and 2019, U.S. GDP could increase 4.9%, to $21 trillion, and federal revenue could increase 2.5%, to $3.4 trillion. The deficit could rise 16%, to $964 billion.
Here are the projected changes, between 2018 and 2019, for core welfare program revenue and spending items:
Individual income tax revenue: +1.1%, to $1.7 trillion
Corporate income tax revenue: +3.2%, to $225 billion
Social Security tax revenue: +6.2%, to $905 billion
Medicare tax revenue: +6.2%, to $275 billion
Estate and gift tax revenue: -32%, to $17 billion
Federal Reserve System earnings: -24%, to $55 billion
Social Security benefits: +6.1%, to $1 trillion
Medicare benefits: +10%, to $640 billion
Medicaid benefits: +4.5%, to $420 billion
— Read Life Assets Grew More Slowly Than U.S. Wealth: Fed on ThinkAdvisor.