Posted on 11/29/2017 4:20:24 AM PST by Michael van der Galien
The tax cuts President Trump is working on with Republican leaders in Congress have a major problem. Charles J. Sykes explains in the L.A. Times:
The tax plan helps balloon federal deficits, and it does nothing to address the rising costs of entitlements as the population grows older and sicker.
The Committee for a Responsible Federal Budget estimates that the proposed GOP House tax cuts would “result in debt reaching the size of the economy by 2028 and exceeding its post-World War II record a year or two later.”
The Congressional Budget Office estimates that even without those tax cuts, an aging population will push the deficit from 3.6% to 5.7% of the country’s economic output by 2017.
Spending for mandatory programs will increase from $2.5 trillion in 2017 to $4.3 trillion in 2027, and interest payments on the national debt alone will double as a share of the GDP.
He goes on to write that there "is a lot to like in the tax bill" for conservatives -- lowering the corporate tax rate, for instance -- but that these cuts aren't likely "to pay for themselves."
What's more, there's literally "no one, including conservative economists," who think that the U.S. can simply grow its way "out of the looming entitlement crisis."
These tax cuts could very well end up being Trump's signature achievement, but only if he forces Congress to agree to significant spending cuts.
(Excerpt) Read more at pjmedia.com ...
These tax cuts could very well end up being Trump’s signature achievement, but only if he forces Congress to agree to significant spending cuts.
The bottom line if ever there was one. And just how does one go about Forcing the Congress to do anything, much less cut spending. Government agencies do most of the spending, so IMHO getting rid of Government agencies is the quickest way to cut spending.
That said, one of my Senator’s favorite topics is all of the very costly spending being on autopilot. That is enshrined in law and done without anyone having to do anything, it just happens. The big three, SS, Medicare, and Medicaid.
The big three is where the change has to come, and Seniors need to keep that in mind. It isn’t about what I am owed or payed for throughout life, it is about how much you are willing to contribute to the solution. Would a ten percent cut in SS, medicare, and medicaid each year for the next five years get it done? It would have to qualify as a good start.
“The tax plan helps balloon federal deficits, and it does nothing to address the rising costs of entitlements as the population grows older and sicker.”
There are two answers for federal deficits in order of priority:
1) Reduce spending dramatically by slashing departments, programs, and the bureaucracy. Let states decide whether or not to continue and fund all entitlements other than Social Security and federal pensions.
2) Create an environment for rapid economic growth
- slash regulations
- slash and simplify individual and business taxes
- eliminate the Federal Reserve and return to sound money
- enforce anti-trust laws to break up oligopolies and increase compeition
- Exit multilateral trade agreements. Negotiate bilateral trade agreements that are truly reciprocal and fair to both parties. Set a 30% tariff on all products from countries without a bilateral trade agreement.
- Reduce immigration and limit it to people with skills needed by the economy. Expel immigrants who are not self supporting.
- Bring troops home from around the world. Deploy some of the troops along the border to stop illegal immigration and cross border crime such as drug dealing.
Stop this ridiculous spending and build every inch of the wall.. That in itself will be better than this give more middle class money to the non contributors.
Building the wall would pay for itself. Tax bill...spenderiffic. Punishing every person in the middle without a half dozen kids.
This is misleading.
The point of the tax cuts, especially on corporate tax rates, is that for every dollar kept in the peoples' and companies hands, there is a dollar to buy things with (things that are made and sold by others, who get the business-money, and can pay taxes) and another dollar to invest.
All of this grows the economy in the sense that more people are working, and there are therefore more tax payers. It works EVERY single time it is done. Just ask those economists who worked for JFK and Ronald Reagan!
Now entitlements are another story. We WILL spend more and more for these. We need to have an approach to this, but cutting taxes now is the pro-growth thing we need to do now.
Once that's done, we need to start rolling back every government program not needed, while dealing with fraud and waste while also cutting as much red tape as possible.
The GOPe needs to seriously get with the program NOW. If they don't, and these efforts fail, then we have a real possibility of seeing Nancy Peelosi as Speaker again.
I can guarantee the democrats will not vote for ANY pro-growth anything, and only enable MORE entitlements.
It will come down to McCain again. He has a history of voting against tax cuts that increase the deficit and for sticking his finger in Trump’s eye. No use to get our undergarments entangled further...
How are these “Trump’s tax cuts”? Congress put this bill together, along with all of the gymnastic nonsense that’s making it questionable.
Non-conservatives look at tax cuts, and all they see is revenue being removed.
That is it. Removed. A zero-sum issue to them.
They refuse to recognize the mechanisms behind tax cuts that you described. They know about them but refuse to acknowledge them.
As for spending, it has to stop. And in my opinion, it should at the very least start with the smallest things. All these “little” things, $500K here, $2 million there, for idiotic things like grants to study the spotted lugwort sexual habits, the “Ad Council”, or...Obamaphones.
A billion here, a billion there, pretty soon you are talking real money.
Here’s a place we can with.
The CFPB that Mulvaney was just made Acting Director of:
Modify the law that allows this board to take fines it levies against whomever, and specify they fines collected go to service the national debt. Not much money but as you say, a billion here, a billion there...
This also cuts FRAUD. It is FRAUD for anyone in the government to give away collected fine money to wherever they decide. I don’t think many people would disagree, even rank and file democrats and democrat voters.
I like that!
Tax cuts do not ‘balloon” the deficit. SPENDING does that. Stop spending so much and the added revenue from the taxes will REDUCE the deficit and debt. ECON 101
Cut spending, dammit! Reduce the size of government by about 80% over 10 years and limit it to border security, international relations, federal courts and the military.
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