The evidence is in and no analysis of the tax legislation in Congress shows it covering its cost through increased economic growth, much less growing the economy enough to put a dent in the national debt. If lawmakers are truly serious about encouraging stronger economic growth over the long run, they should consider real tax reform that does not increase the debt.
Policymakers are turning their focus to tax reform and are touting it as an opportunity to create a lasting legacy. Unfortunately, the path they are currently going down will leave a legacy of suffocating national debt for our children and following generations.
While President Trump and others usually focus on how economic growth can help reduce the debt, which is true, the relationship works the other way as well. Getting the debt under control can help grow the economy and improve the standard of living for all Americans.
The tax debate is moving forward in Washington, but lawmakers may be going in the wrong direction when it comes to the national debt. Anyone who laments the gross debt surpassing $20 trillion cannot support tax cuts that explode the debt in their next breath.
The United States just hit a sad milestone as the gross national debt exceeded $20 trillion. Although that isn’t the best measure of the nation’s debt burden, it is serving a useful purpose by drawing attention to the fact that the debt is at record levels and growing unsustainably.
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