Posted on 11/29/2017 12:12:00 PM PST by DCBryan1
With Congress wrestling over a tax reform plan that critics say would explode the government budget deficit, Federal Reserve Chair Janet Yellen said she also is concerned over the surging level of public debt.
A Senate committee passed the GOP-sponsored proposal, which would slash the corporate tax rate and lower individual income rates for many Americans.However, the price tag of the plan is in the area of $1.5 trillion at a time when the Congressional Budget Official already is projecting a deficit of more than $1 trillion in the years ahead and with the total debt level at $20.6 trillion and rising. Of that total, $14.9 trillion is owed by the public.
The Trump administration contends that the lower tax rates would pay for themselves through growth. In her semiannual testimony before Congress, Yellen was asked about a proposal that would trigger tax hikes if economic goals are not met.
The central bank chief did not specifically comment on the trigger plan but said Congress is right to be thinking about the future of the national debt.
"I would simply say that I am very worried about the sustainability of the U.S. debt trajectory," Yellen said. "Our current debt-to-GDP ratio of about 75 percent is not frightening but it's also not low."
"It's the type of thing that should keep people awake at night," she added.
(Excerpt) Read more at cnbc.com ...
The Fed has no control over that.
The Fed does not borrow or spend money. Congress and the President do that.
Very True......as citizens we must get corrupt cronyism out of congress and cut spending.... we really really need congressional term limits
Why can’t we state that on 1 January 2018 all entitlements and associated taxes are hereby administered by the respective states with a per capita distribution of existing resources.
Federal government will no longer offer, administer, or tax for social programs. The States can offer, administer, or tax as they feel for the same.
1.7-1.8 Trillion returned to the States for administration as they see fit. Cut Fed taxes to 10% flat across the board. No allowance for Federal bailouts of States, Territories, or other local government entities.
Then let those laboratories of democracy demonstrate which approach is actually best.
The Fed spends money on salaries, office space, meetings and so forth. The Fed influences money policy, no?
The 1.4 tril is the projection for 2018-2028.
Can't find anything that supports what you're saying.<>I'll go read it again.
UH, if Obama’s deficit didn’t keep them up at night, why sound any deficit??
The 1.4 tril is the projection for 2018-2028.
I believe you are incorrect. Or else we're going from a $600-plus billion deficit to a $140 billion deficit in one year. I'd love to see something to support that projection.
The CBO has said that the tax plans being considered will add about $1.4 trillion to the deficit. That isn't expected to be the total deficit.
Can't find anything that supports what you're saying.<>I'll go read it again
Around page 15 of the .pdf.
The Federal Reserve Banks fund themselves, they don't get any appropriation from the Federal Government. Only the Fed Board of Governors gets that. Anything above their costs is returned to the Federal Government. Last year it was in the neighborhood of $80 billion.
The Fed influences money policy, no?
It does do that.
I don't know any other way to read it.
Oh Yellen for sure, I’m more referring to the Media. They only care about deficits and national debt if a Republican is in the White House.
Yellen has a fairly liberal background and leanings I’m thinking but she is by no means a dummy. I’ve read books from her husband and friends.
Sadly, we’ll go morally bankrupt in this country long before we’re financially bankrupt.
Republicans only care about deficits and the national debt when a Democrat is in the White House. Democrats only care about deficits and the national debt when a Republican is in the White House.
Sadly, we’ll go morally bankrupt in this country long before we’re financially bankrupt.
Look around and tell me we haven't already reached that point.
Why it doesn’t bother a single democrat in the whole country.
It does keep people awake at night just not the people in charge. :-)
In addition to the already expected deficits, which are running north of $600 billion.
I don't know any other way to read it.
Then read it. The term that the CBO and others use is "it will add $1.40 trillion to the deficit..." The deficit, not the debt. Nobody I am aware of is expecting the budget to be balanced next year if this tax bill doesn't pass. Or expect the deficit to be only $140 billion if it does.
And if estimates be true, the tax bill will add, on average, an additional $140 billion per year for the next ten years to already projected deficits.
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Better yet how about -$2 trillion in 10 years. To not even propose a balanced (or surplus) budget is a lame move by Mr. Trump. I guess there is aways next year.
As for Ms. Yellen, she encouraged/enabled the deficit spending via zero interest rates...why is she concerned now! Lame.
What keeps me up at night is knowing hacks like Janet Yellen are in in charge of anything in government!
We need to cut about $.8 trillion from the spending and then we will have revenues of 3.6 Trillion and Spending of 3.1 Trillion, instead of 3.9 Trillion.
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