Monday, February 16, 2026
I’ve talked about how tariffs are taxes. I’ve also talked about how consumers pay all taxes, directly or indirectly. I’ve also mentioned how when it comes to the federal government, spending will never stop. Recent data backs it up.
President Trump’s first federal budget, passed by a Republican Congress, took effect on Oct. 1, 2024. How did his reforms reduce waste and eliminate the deficit? They didn’t.
Trump’s budget made our financial situation materially worse. October 2025 federal spending was $689 billion, up 18%. October 2025 tax receipts were $404 billion, up 24%.
But the October 2025 deficit was $284 billion, or up 10.5%.
So, the president managed to both raise taxes substantially and grow the deficit at double digit rates – the worst possible outcome.
Trump’s budget harms the economy and doesn’t do anything to reduce the risk of a financial collapse. It makes it more likely.
Of course, Republicans will praise the $31 billion in tariff revenue collected in October. It’s bizarre to hear Republicans, historically the party of small government and low taxes, bragging about collecting billions in additional taxes.
They’re proud of policies making our country’s financial situation worse. Our deficit was $105 billion more this October than last October.
If Americans genuinely want a healthy economy and a currency that won’t be worthless, government must cut costs. This isn’t a political argument, it’s math.
Total government spending is 40% of U.S. gross domestic product. History shows governments can’t consistently collect more than 30% of GDP in taxes because it costs more to collect the taxes than the revenue collected.
So, we have twice as much government as we can afford. Tariffs won’t help. People will simply alter behaviors to avoid tariffs.
Daniel A. White is an investment advisory representative of and provides advisory services through CoreCap Advisors, LLC. Daniel A. White & Associates and CoreCap Advisors are separate and unaffiliated entities.