U.S. Deficit Soars to $2 Trillion Despite Economic Growth, Fueling Debate Over Tax Hikes vs Spending Cuts

The U.S. federal deficit doubled to nearly $2 trillion in the past year despite a growing economy, due to a big drop in tax revenue.

Higher interest rates make borrowing money to cover deficits much more expensive for the government.

Republicans want to cut spending, especially on non-defense programs, to reduce deficits.

Democrats want to raise taxes on corporations and the wealthy to reduce deficits.

Experts say a balanced solution of tax hikes and spending cuts is needed, but political polarization makes compromise very difficult.