The claim that tax cuts will pay for themselves through stronger economic growth is one of the key arguments used by supporters of the tax legislation being debated by Congress. But the historical and economic evidence indicate that this just isn’t the case.
Tax cuts are moving forward on Capitol Hill, but they represent a step backward for fiscal responsibility.
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.
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.
Tax cut bills are now moving in both the House of Representatives and the Senate. With budget deficits growing and tax cuts set to make the situation even worse, policymakers must address spending through the tax code in order to achieve real tax reform that will help get the nation’s finances in order.
National Debt and You