Legislation passed in December and other developments have set the stage for higher deficits and national debt. Trillion-dollar deficits could now return as early as next fiscal year and the debt could exceed the size of the economy within a decade. We have a rundown on what could run up the debt and other happenings related to the federal budget.
It is clear that the final tax bill in Congress falls well short of being fiscally responsible or reforming the tax code, as supporters initially promised.
Congress is on the cusp of passing tax legislation. But prominent voices continue to call for a better approach.
Negotiators from the House of Representatives and Senate are about finished ironing out the differences in the tax bills they recently passed and plan to vote on final tax legislation the week of December 18. The conference committee reconciling the two bills was another missed opportunity to improve the legislation so that it really transforms the tax code without adding to the national debt. Instead, it looks like more gimmicks will be added that will increase the true cost of the legislation.
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.
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