Posted on 01/08/2025 8:29:07 PM PST by SeekAndFind
New Senate Majority Leader John Thune on Sunday said one of his top objectives will be to address the country’s “fiscal mess” — even while acknowledging upcoming expected GOP tax cuts may not be fully funded.
Thune (R-SD), 63, who officially took the baton from Mitch McConnell as the Senate’s boss Friday, stressed his intent to focus on problems for the long term.
“I would like to see us as a nation do things that affect the long-term stability, future of our kids and our grandkids,” the Republican told NBC’s “Meet the Press” when asked about the “mark” he wants to leave during his tenure. “We’re in a fiscal mess, $3[6] trillion in debt.
“But I think first and foremost it’s protecting the country,” Thune added of issues facing the US. “Military readiness will be a big priority for me.”
President-elect Donald Trump and Republicans are headed for something of a fiscal storm in 2025, forced to reckon with expiring provisions of the 2017 tax cuts, expiring expanded subsidies in the Affordable Care Act and the return of the debt ceiling, among other issues.
Republicans have made clear that they want to extend the 2017 tax cuts and add other reforms that Trump, 78, championed on the campaign trail such as no tax on tips and no tax on Social Security checks.
Extending those tax reductions could add $3.59 trillion to the deficit between 2025 to 2034, according to an estimate from the Tax Foundation.
Thune admitted that Republicans may not be able pay for all of their tax reforms, even with such measures as cuts in spending.
“Well, not perhaps all of it,” Thune said when asked about paying for the potential bill.
(Excerpt) Read more at msn.com ...
FROM THE ARTICLE:
The Senate Republican leader has favored putting forth two major “reconciliation” bills in the Senate to try to help carry out President-elect Donald Trump’s agenda.
First would be a bill to address the border, energy and national defense. The goal would be to bring that to Trump’s desk so that he could have an early win. Then later in the year, a second bill would push tax reform, which is generally seen as more complicated legislation.
In the House, Republicans, including Speaker Mike Johnson (R-La.) and his top tax writer, Ways and Means Committee Chairman Jason Smith (R-Mo.), have favored a singular bill to carry out all those reforms. Trump has reportedly warmed up to that strategy.
Allowing citizens keep more of their own money isn’t a thing that has to be funded. This is a perverted view of reality.
Exactly. Spending is funded by revenue. Reducing tax rates typically increases revenue.
When was the last time any congressman worried about spending not being fully funded.
Sort of a rhetorical question. I think the smarter (read “evil”) lefties know this, and look forward to spending the increased funds.
Sen. ADM/Monsanto/Cargill/etc. is getting it right?
Only, there’s NO SUCH THING as funding a tax cut. A tax cut is letting people keep more of what they earn.
You don’t have to “fund” a tax cut.
Also I note they never had to “fund” the hundreds of billions they gave to Ukraine.
If Thune doesnt stick to the Trump agenda and get things done he is committing political suicide.
“First would be a bill to address the border, energy and national defense. “
Translation, they won’t secure the border unless he sends billions to Ukraine. Just watch.
And the Laffer curve is real. The only debate can be about where you are on that curve. When JFK, Reagan, and Trump cut taxes... revenue increased dramatically.
Cutting taxes, killing regulations, and selective tariffs makes revenue explode.
So Thune is a dolt?
cut taxes by 4 trillion, cut spending by 4 trillion. Solved.
You don’t fund tax cuts. You cut taxes and spend less money.
The U.S. Senate up to its usual back-stabbing tricks...
The GOP interference with a Trump attempt to MAGA like it successfully did in 2017->2020 has already started again!
Basically, like obama ran the WH for the past four years, Chuck Schumer is behind licking his chops at seeing who will control the WH for the next four years, thereby guaranteeing a quick recovery of the communist party in the next two elections...
The world is not what it used to be. If you believe that in the past a cut in tax rates increased tax revenue then you’ll need to put a time frame on that. If you cut tax rates in March I can guarantee you that you will not have an increase in tax revenue in March. It may percolate through the economy and eventually do what you imagine that it will but it isn’t going to happen in March.
Why does that matter? Because of the debt of 37 trillion dollars. Until this magical increase in tax revenue derived from a cut and tax rates appears, you are going to have an increase in debt during that period of time and it’s going to compound 3.5%, which is the current composite interest rate on the debt.
10 years ago when interest rates were about zero, or negative, maybe you could play this game. But that world is long gone. You’re not going to 0 percent interest rates again while Bond vigilantes are in the process of ratcheting rates upward.
Mathematics is stronger than ideology. Interest on the debt overwhelms any magical increase in tax revenue that you imagine will happen at some point in time after a cut in tax rates. And it will do so fast enough to probably overwhelm the increase in revenue when it eventually arrives. That’s with 3.5% on 37 trillion does.
Tax cuts PAY FOR THEMSELVES.
“Tax cuts PAY FOR THEMSELVES.”
In the long term that is correct. Short term, not so much. There’s a lag time.
L
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