struggling economy. john, 2018 is different. the economy is strong and growing. unemployment very low. typically deficits shrink during boom times as the government collects more taxes from taxpayers. but thanks to tax reform, the u.s. is spending more than it takes in. spending rose 3% because of higher interest payments on debt and more defense spending. tax revenue failed to keep up thanks to tax cuts. government revenue was flat. corporate tax collection, taxes from companies fell 22%. or $76 billion. the white house defends the tax cuts. they say it s boosting economic growth which will eventually increase tax revenue. the treasury secretary steven mnuchin said the white house will eventually cut wasteful spending to make up the difference. that makes progressives nervous who fear it likely means social security and health care cuts. and finally deficits, of course, are not free. someone has to lend uncle sam the money to leave beyond its means, and who is the largest foreign hold
enormous. and how the u.s. responds to all of this will be very, very significant. the whole world will be watching. let me go to another issue that s emerging right now. all of a sudden we re learning the federal deficit rose by 17% in this year, 2018 to $779 billion. the deficit this year, that s the highest since 2012. spending was up while corporate tax collection fell by $76 billion. due in part to the republican tax cuts for corporations. estimates also in this latest federal government report say the federal deficit next year could top $1 trillion. congressman, what ever happened to that part of your party that used to be deficit hawks and say you can t go on raising, raising, and raising the national debt? yeah. look, if you re a sincere if you are an enemy of national debt and spending, then you have a friend in me.
this as trade negotiations break down. china saying the u.s. is putting a knife to its neck. that knife is tariffs. now, on $250 billion in chinese goods and the president threatened another $276 billion. it is meant to punish china for years. now, the president, i am told, wants nothing less than a reset of america s relationship with china. the feeling is the u.s. economy is strong. stock market is at record highs. now is the time for this president to crack down on china. he is not backing down. thank you very much. we re following a lot of news this morning, so let s get to it. all right. good morning, everyone. welcome to your new day. it is tuesday, september 25th, i m told. it is 8:00 in the east. i m also told that.
a lot from tennessee and neighboring kentucky. when tariffs make it more expensive, that poses a real threat to the growing market. the map of affected states looks a little different when you talk about retaliatory tariffs from china. agriculture is a big part of this equation. louisiana, for example, has almost $6 billion in agricultural exports. washington state has another roughly $5 billion. and then california weighs in again, always important, about $4 billion in automotive products out there. so if all these states feel so much pressure, why do this? from the president s point of view, this is the reason. look at how much the u.s. exports from china versus how much china imports from the u.s. the difference is around $376 billion. the white house doesn t like that and believes the short-term problems and all these complaints about a trade war right now for american communities will be outweighed by the long-term gains of these numbers coming more into
they are canceling or delaying capital expenditures. they are seeing overseas markets that they spent decades developing, drawing appeared they are seeing steel prices 30% higher. their global competitors are not paying those higher prices. they can ship product into the country very competitively. neil: he is not dialing back, right? i am looking back at u.s. imports, auto import. $176 billion worth, $36, auto components and parts can with that is close to $360 billion worth of auto related parts, supplies, actual autos. this could be humongous. this could be totally counter productive in terms of the good things that we have done. neil: when you tell him and you have written this letter into the one letter can with does he say to you customer