Tax revenue jumps 22% in April, but U.S. deficit still looms large

In April, U.S. tax revenue surged by 22% to $776 billion due to increased employment and wages. Despite this, the U.S. Treasury noted a significant deficit, projecting over $1.5 trillion by year-end. Government spending also rose, notably due to higher interest payments on the federal debt.

Seven months into the fiscal year, the U.S. deficit stands at $855 billion, 8% less than the previous year but still substantial. White House economic adviser Lael Brainard attributed much of the deficit to past tax cuts, specifically those from 2017, which are contributing heavily to the national debt. A looming conflict in Congress over these tax cuts is expected as their expiration approaches next year.