Trump’s Tax Plan IS “Deficit Exploding”


This video is from 2015.  David Pakman described Trump’s tax plan us “deficit exploding”.  It is still exploding the deficit.

Under Trump’s new plan he will add one trillion dollars to the national debt.  That’s on top of the deficit that has already expanded by for fiscal 2017 by $666 billion, or 3.5 percent of the overall U.S. economy. It’s amazing because Republicans have complained about the deficit as long as they were not in control.  Every year the country runs a deficit and thereby adds to the national debt. That debt is now seven percent of federal spending. That’s not yet a calamitous level, but it’s already more than 40 percent of what we spend on national defense—and the tax bill means that number will soon go up.

The number represents spending that lawmakers can’t cut. Whether the debt holders are foreigners, or grandma’s pension fund, the interest on those bonds has to be paid. Not paying it means the U.S. would default on its debt, which would roil the financial markets. Meanwhile, the money budgeted to pay interest on the debt means it can’t go elsewhere: Democrats can’t spend it on free college or more health care, Republicans can’t use it to ramp up defense spending. Adding to the burden of the debt: interest rates, which have been historically low for years, but are now going up—and may continue to rise for some time.

 

Fareed Zakaria explained the problem succinctly.

The federal deficit is alarming and is quickly getting out of control.  During Obama’s time in office the national debt virtually doubled.   Regardless of whose fault that may be, and regardless if you feel the spending was necessary, it is clear that there is no end in sight.  Now that Republicans are in control, and the deficit is increasing, there is little hope that it will EVER be reduced!

 

4 thoughts on “Trump’s Tax Plan IS “Deficit Exploding”

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  1. Between the tax increase and threats to the UN, it’s obvious the GOP and 45 have no clue about Federal finance, especially debt. Not including the $1.5 trillion they just added, the U.S. has $6 trillion held by foreign countries. China and Japan are each owed over $1 trillion. At one time 45 suggested that we refuse to pay them. He is clueless.

    The GOP, during the Bush years and now with the majority, spends money like a drunk with a stolen credit card. Reagan and Bush I ran up a deficit, Clinton worked it down. Bush II ran up all the credit cards again. Obama paid them down. Now Ryan and the Bankrupter in Chief are trying to break the bank with an unknown debt estimated to be at least $1.5 trillion if businesses actually put the money to work.

    Cleveland will win the Super Bowl and the World Series before you see anything trickle down from the tax cuts. (Yes, I live in greater Cleveland.)

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  2. In addition to giving a big gift to the very rich and to big corporations, the tax scam now unfortunately about to come into effect 1/1/2018 is going to be the GOP excuse for doing in social Security, Medicare and Medicaid. The GOP has wanted to destroy Social Security since it was enacted in the 1930’s; the same with Medicare since it was enacted in the 1970’s. And, of course, they want to do in Medicaid because it helps the most vulnerable in our population.

    Our new member of Congress, almost-a-general, Jack Bergman campaigned on wanting to end all three. He doesn’t think that the American people deserve anything from the government! Of course, he’ll get to keep his military benefits and now his Congressional benefits. Why were the people of the First Cong. District of Michigan so incredibly dumb to vote for him? I’ll never understand why people vote against their own best interests so often!

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