Bloomberg reported that the US recorded a budget deficit of $146.8bn in May, which is the largest for the month since 2009 when the US government had to bail out several financial institutions including Citi, AIG, and Goldman Sachs. This 66% increase in the gap between government spending and tax revenue since last year has mostly been attributed to tax reforms, which included a cut in the corporate tax rate from 35% to 21%. The full effect of this tax cut has yet to materialise and can only be reliably measured after at least a year of development; it is, however, estimated that the tax would lead to a $1.5trn loss of revenue over ten years, which is particularly alarming for the millennial generation.
