Posted on 04/27/2017 2:02:10 PM PDT by NRx
WASHINGTON — As President Trump’s top economic advisers faced a barrage of questions on Wednesday about the tax plan they had just unfurled, there was one that they struggled most to answer: how to keep the “massive tax cuts” they proposed from ballooning the federal deficit.
The White House insists that economic growth will cover the cost, which could be as high as $7 trillion over a decade. But the question will dog Republicans and could fracture their party as they face the prospect of endorsing a plan that many economists and budget analysts warn will increase the deficit. After years of fiscal hawkishness, conservatives now face a moment of truth about whether they truly believe America’s economy is drowning in debt.
Some skeptics are already ringing alarm bells, fearing that Republicans will sign on to what critics see as a dangerous plan composed by a president who called himself the King of Debt.
“It seems the administration is using economic growth like magic beans: the cheap solution to all our problems,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, a nonpartisan group that advocates fiscal restraint. “But there is no golden goose at the top of the tax-cut beanstalk, just mountains of debt.”
Ms. MacGuineas’s group estimates that Mr. Trump’s plan could reduce federal tax revenue by $3 trillion to $7 trillion over a decade. The economy would need to grow at a rate of 4.5 percent — more than double its projected rate, an unlikely prospect — to make the plan self-financing.
(Excerpt) Read more at nytimes.com ...
A few years back the GOP Congress critters all signed a pledge saying no more new debt. I'm holding them to that.
"Gold is the currency of kings, silver the currency of nobles, and barter the currency of freemen. But debt is the currency of slaves"
NO MORE DEBT! NONE! NOT ONE CENT!
Where was the NY Slimes concern when Obama increased the debt 88%?
The implementation of these tax plans takes a bit of time. It also takes a bit of time for the economy to figure them in, and start generating new tax receipts for the federal government.
The tax cuts work. We just have to be patient for a 12-24 months.
These cuts will generate far more than they cost.
Following Reagan’s tax cuts, federal receipts nearly doubled.
What you should be worried about, is these tax cuts not taking place. That will grow the deficit. The cuts won’t.
“Following Reagan’s tax cuts, federal receipts nearly doubled.”
No, they didn’t. Reagan’s tax cuts (horrible idea) coupled with the vast increase in military spending (probably necessary) caused an explosion in the national debt that dogged his administration and the GHW Bush’s as well. It was a fiscal train wreck that didn’t end until the bond vigilantes of the early 90’s forced Congress to get a handle on the debt.
This is just another feeble attempt by the progressivist establishment to chip away at Trump’s support base.
Yes, that was a very nice recitation of the Leftist claims of the day.
The upgrade of the military wasn’t the problem. The problem was the Leftists in Congress spent far more money on other things than they needed to.
Reagan doubled receipts, and the Leftist tripled expenses.
Reagan’s doubling of receipts was plenty enough to fund the government and build up the military.
It wasn’t plenty enough to do that and cover everything on the Leftist’s wish list.
So you have no concerns about any added debt?
I trust the opinion of a BILLION DOLLAR PRESIDENT more than the opinions of political pundits who turned America into a DEBTOR NATION.
Simple: Reduce the size, scope, power and cost of government to that which is specifically authorized by the Constitution.
Who has the guts to do that?
Anyone?
Trump?
Not nearly enough to make absurd comments like “I’m not planning on switching my tune for the new guy.”
Especially when you look at what Trump’s done overall, with the military, defeating ISIS, breaking the EPA, beating back planned parenthood, the list goes on. Any one of these items alone is enough to warrant the highest level of support for President Trump.
Obama adds 10 Trillion dollars to the National Debt. Not a peep from the Slimes. Crickets.
Trump begins to negotiate tax cuts for economic growth, and over at the Slimes it is TEOTWAWKI. They are so transparent now. Everybody knows they are a working propaganda wing for the Democratic Party. Well everyone but liberals.
Here’s a tidbit just sufficiently confusing to cause all right wing red blooded chest thumpers to move on.
All Money Comes From the Government (in the context of the Federal Reserve (it does say Federal you know) being part of the government).
Think about that. Where the hell did you think money comes from? Who creates it? There was none in the Garden of Eden, so where did it come from?
That’s right. Thin air. And if it comes from thin air, why do we care how it’s arranged?
Let’s just say I’m not holding my breath.
Reduce taxes while reducing spending. More money in peoples’ pockets means they can spend more. Spending more means more tax revenue.
Why do people deliberately ignore this?
Yeah ... I’m not either.
“No State shall... make any Thing but gold and silver Coin a Tender in Payment of Debts...”
Article 1 sec. 10 Constitution of the United States
Ms. MacGuineas’s group estimates that Mr. Trump’s plan could reduce federal tax revenue by $3 trillion to $7 trillion over a decade
The purpose of Economic Forecasting is to make the Practice of Astrology look like a respectable Science.
I guess you’ve never heard of the Laffer curve either, huh?
Yes, I guess I can see a bit of their point. Bush tax cuts came with no matching cuts in government. There will be a rise in economic growth, but not sure enough to cover future deficits.
Right now, and I don’t believe I am saying this as a fiscal conservative, there are more pressing issues at hand. One, is the Mexican invasion south of the border that must be stopped. The second is the invasion of Muslim refugees the left desperately wants to foster.
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