According to the US Treasury Department, the US budget deficit amounted to US$1.02 trillion in 2019. The gap between budget revenues and expenditures continues to grow. In October-December 2019, it amounted to US$357 billion, 12% more than for the same period in the previous year. The main factors influencing the recent increase in the US budget deficit are tax cuts and a budget deal that allows US President Donald Trump to increase federal government spending over two years. The US budget deficit increased by 39% in the first eight months of the 2019 fiscal year, reaching US$738.6 billion, which is US$206 billion more than a year earlier. The budget deficit at this time is 4.7% of GDP. One reason is the Trump administration’s reduction in corporate taxes. By raising tariffs on Chinese exports and goods from other countries, President Trump is trying to compensate for the lost revenue, but is doing poorly.