The House of Representatives and Senate have both passed legislation to cut taxes. Both versions could increase the national debt by some $2 trillion over ten years. That is on top of the $10 trillion that the debt is already forecast to grow by over the next decade.
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.
There has been a great deal of action lately on matters affecting deficits and debt and much still in the works as policymakers rush to meet some deadlines at the end of the year. Tax cuts are now at the top of the agenda, but there is a lot more on Washington’s plate. Here’s your fix for the latest developments on the federal budget and national debt.
Lost in the discussion about how tax cuts will affect the national debt is an understanding of what the debt situation already looks like before tax cuts are factored in. Here is a quick and simple look at where we are, where we are heading, and how tax cuts could affect the outlook. In short, tax cuts that add to the debt will make an already dreadful state of affairs even worse.
While many special interests are frantically telling lawmakers their tax preferences should be kept in a rewrite of the tax code, two organizations are taking to the airwaves with the message that tax reform must be fiscally responsible.
National Debt and You