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Thanks to Trump, government borrowing leaps to $1 trillion this year

  1. promisem profile image96
    promisemposted 2 months ago

    Trump's new tax law that deeply slashes taxes on rich people and large corporations will force an 84 percent increase in government borrowing this year to nearly $1 trillion.

    https://www.washingtonpost.com/news/won … 3d92970ec3

    As a fiscal conservative and former Republican, I'm appalled once again at the total corruption of the Republican party and its principles. The party serves only the rich to the detriment of our country.

    How can anyone support the GOP and Donald Trump while claiming to be a conservative?

    1. wilderness profile image98
      wildernessposted 2 months agoin reply to this

      Odd.  All the projections I've seen are that it will increase the national debt by 1.5T in 10 years: that doesn't fit very well with 1T in the first year.

      But whether it's an accurate guess or not, seems that we badly need to cut spending, doesn't it? 

      (Was there a reason that the tax cut for the middle class wasn't included in the reasons for additional debt?)

      1. promisem profile image96
        promisemposted 2 months agoin reply to this

        The article refers to borrowing in a single year. The total increase in borrowing is $426 billion. To your point, it begs the questions of whether the debt estimates were too low.

        To my point, do you think the tax law is fiscally responsible if the national debt skyrockets?

        Yes, there is a reason that I didn't mention the middle class. Their tax benefit isn't meaningful.

        The $50,000 to $75,000 range will see an average tax change of $870.

        Millionaires on average will get an extra $69,660 boost. Those with less than $10,000 will get an extra $10 to play with.

        https://usercontent1.hubstatic.com/13893952.jpg

        1. wilderness profile image98
          wildernessposted 2 months agoin reply to this

          "To my point, do you think the tax law is fiscally responsible if the national debt skyrockets?"

          Possibly.  Don't forget, we're not operating under Trump's budget, but that of Obama.  Let's see what next year's budget (and actual spending) is before we make the call that a tax cut was fiscally irresponsible.  As well as what actual tax receipts this year are.

          "Millionaires on average will get an extra $69,660 boost. Those with less than $10,000 will get an extra $10 to play with.

          So 10000 millionaires get an extra $70,000.  And 100 million middle class wage earners gets 1,000.  Which one adds more to the debt?  (Hint: one is measured in the millions and the other in the billions.  And it isn't the millionaires that are in the billions.)

          (not that I believe that 70,000 figure; the median millionaire has 1.6M in wealth and earns $250,000 on the average.  Even if their tax bill is cut in half (it wasn't) then they DID owe $140,000, or 56% in federal taxes.  Didn't happen.  And the earner with 10,000 income got exactly zero as they didn't owe anything anyway.)

    2. Eastward profile image92
      Eastwardposted 2 months agoin reply to this

      I'm pretty skeptical of anything written in the Washington Post and generally try to avoid it as a news source. The CBPP appears to have a reasonably diverse board of directors -- though I'd have to put in significant due diligence to dispel biases. With the top 1 percent receiving 34% of total benefits, I have a feeling that our corruption problems will only deepen. More laws will serve profiteers rather than the American people, leaving us deeper in debt with a weaker dollar. I see a lot of argument lately that the Fed can print all the money it wants and that we can never go broke as a country. While that may be true in a way, if we have dollars being printed willy-nilly, we'll be lucky if they are worth the cost of the paper.

 
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