Republican tax cuts to fuel historic U.S. deficits says the Congressional Budget Office

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sanfordandson
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Republican tax cuts to fuel historic U.S. deficits says the Congressional Budget Office

Post by sanfordandson » Mon Apr 09, 2018 11:13 pm

https://www.reuters.com/article/us-usa- ... SKBN1HG2RW
The massive tax cuts signed into law in December, which Republicans said would pay for themselves, will balloon the U.S. deficit in years ahead, the Congressional Budget Office said on Monday, possibly hobbling President Donald Trump’s future agenda.
The deficit - the amount that Washington’s spending exceeds its revenues - will expand to $804 billion in fiscal 2018, which ends on Sept. 30, up from $665 billion in fiscal 2017, CBO said.

The national debt is on track to approach 100 percent of gross domestic product (GDP) by 2028, said the nonpartisan CBO, which analyzes legislation for Congress.

“That amount is far greater than the debt in any year since just after World War II,” CBO said, adding that the debt is now about 77 percent of GDP, a measure of the size of the economy. The Republican tax legislation, passed by Congress without Democratic support, along with a recent bipartisan $1.3 trillion spending package, are expected to drive economic growth faster than initially expected, CBO said.

Real GDP will grow by 3.3 percent in 2018; 2.4 percent in 2019; and 1.8 percent in 2020, it said.

But those growth rates will not offset the deficits, which will “increase rapidly this year and over the next few years,” then stabilize, resulting in a projected cumulative deficit of $11.7 trillion for 2018-2027, CBO forecast.

The analysis “confirms that major damage was done” by the new tax law and the spending bill, said Michael Peterson, head of the nonpartisan Peter G. Peterson Foundation.

“This high and rising debt matters because it harms our economy,” said Peterson, whose group backs fiscal conservatism.

“During a time of low unemployment and economic expansion, we should be taking reasonable steps to put our debt on a sustainable path – but instead we are piling up trillions of bills,” he said.

The CBO’s annual report on the U.S. budget and economy typically comes out in January but was delayed this year to allow it to assess effects of the tax overhaul and spending bill. The forecast does not take into account any economic impact of the trade dispute between the United States and China.

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Re: Republican tax cuts to fuel historic U.S. deficits says the Congressional Budget Office

Post by exhaustgases » Tue Apr 10, 2018 12:35 am

Instead lets do like obum did and just spend 10 trillion and have nothing to show for it. And maybe a $40. tax cut for everyone. How sweet.
And more unemployment by closing up oil and coal, and adding some nice new restrictions. But cool, add more crooks to places like the EPA and other such deep state alpha bet joints to help continue the agenda no matter what. Oh and pad some pockets too boot. And most importantly pee on the pee on's some more and say what they want to hear while doing what they would not like.

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Re: Republican tax cuts to fuel historic U.S. deficits says the Congressional Budget Office

Post by Firedome8 » Tue Apr 10, 2018 8:57 am

I thought tax cuts bring in more federal dollars ? Why would we have deficits???

j-c-c
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Re: Republican tax cuts to fuel historic U.S. deficits says the Congressional Budget Office

Post by j-c-c » Tue Apr 10, 2018 9:56 am

We need another large tax cut to boost the economy to take in more revenue to cut the deficit.

It sounds so simple folks, simple folks. [-X

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Re: Republican tax cuts to fuel historic U.S. deficits says the Congressional Budget Office

Post by mk e » Tue Apr 10, 2018 10:08 am

Stupid math!

Tax revenue=Money x tax rate

We should shut down the schools that teach that liberal BS...rediculous!
Mark
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Re: Republican tax cuts to fuel historic U.S. deficits says the Congressional Budget Office

Post by j-c-c » Tue Apr 10, 2018 10:19 am

exhaustgases wrote:
Tue Apr 10, 2018 12:35 am
Instead lets do like obum did and just spend 10 trillion and have nothing to show for it.
Seriously?

All the while on edge of total collapse trying to dig ourselves out of the deepest financial hole since the 30's, how soon they forget.

What have you got to show for your current $Trill shortfall, BTW? :roll:

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Re: Republican tax cuts to fuel historic U.S. deficits says the Congressional Budget Office

Post by David Redszus » Tue Apr 10, 2018 11:50 am

mk e wrote:
Tue Apr 10, 2018 10:08 am
Stupid math!
Tax revenue=Money x tax rate
Really?

Tax revenue is a product of money supply x the tax rate.
As the tax rate is increased the economy slows and the money supply dwindles.
The net result is a reduction in total tax revenues.

Conversely, when the tax rate is reduced the economy grows and the money supply
increases resulting in an increase in total tax revenues.

If the tax rate stays the same and the money supply grows, the tax revenue is
also increased, However, the economic growth cannot result from an artificial
"stimulus" created by borrowing money from the economy. This most often
results in a stagnant economy.

But, does a reduced tax rate reduce government deficits? No, not by itself.
If reduced tax rates or improved economy are coupled with excessive spending
it is easy for the deficit to move in the wrong direction.

Every sophomore economics student knows this.

Then why does excessive spending occur so often? For reasons related to
political advantage. Trump cut the tax rate to stimulate the economy and
increase total tax revenues. The Democraps responded by forcing a funding
bill at a record level in an attempt to counter the financial benefits flowing to
the people. They used the funding weapon to block certain Trump programs
and avoid the repeal of the entire Obama legacy.

But the over spending budget is merely temporary; enough to get through
the next congressional election. If the Dimwits gain control of Congress, they
can continue to play economic Russian roulette. If the Trump supporters,
not just stupid Republicans, retain control of Congress, and Ryan and McConell
are replaced, look for a whole new economic dynamic to emerge.

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Re: Republican tax cuts to fuel historic U.S. deficits says the Congressional Budget Office

Post by j-c-c » Tue Apr 10, 2018 1:33 pm

David Redszus wrote:
Tue Apr 10, 2018 11:50 am
mk e wrote:
Tue Apr 10, 2018 10:08 am
Stupid math!
Tax revenue=Money x tax rate


But, does a reduced tax rate reduce government deficits? No, not by itself.
If reduced tax rates or improved economy are coupled with excessive spending
it is easy for the deficit to move in the wrong direction.


Every sophomore economics student knows this.
So who exactly is making out on this ballooning deficit that is behind the excessive spending?

I say everyone.

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Re: Republican tax cuts to fuel historic U.S. deficits says the Congressional Budget Office

Post by David Redszus » Tue Apr 10, 2018 5:04 pm

j-c-c wrote:
Tue Apr 10, 2018 1:33 pm
David Redszus wrote:
Tue Apr 10, 2018 11:50 am
mk e wrote:
Tue Apr 10, 2018 10:08 am
Stupid math!
Tax revenue=Money x tax rate


But, does a reduced tax rate reduce government deficits? No, not by itself.
If reduced tax rates or improved economy are coupled with excessive spending
it is easy for the deficit to move in the wrong direction.


Every sophomore economics student knows this.
So who exactly is making out on this ballooning deficit that is behind the excessive spending?

I say everyone.
Who has to pay this money back?

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Re: Republican tax cuts to fuel historic U.S. deficits says the Congressional Budget Office

Post by Firedome8 » Tue Apr 10, 2018 7:25 pm

David Redszus wrote:
Tue Apr 10, 2018 5:04 pm
j-c-c wrote:
Tue Apr 10, 2018 1:33 pm
David Redszus wrote:
Tue Apr 10, 2018 11:50 am




But, does a reduced tax rate reduce government deficits? No, not by itself.
If reduced tax rates or improved economy are coupled with excessive spending
it is easy for the deficit to move in the wrong direction.


Every sophomore economics student knows this.
So who exactly is making out on this ballooning deficit that is behind the excessive spending?

I say everyone.
Who has to pay this money back?
It can not be paid back. Imho

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Re: Republican tax cuts to fuel historic U.S. deficits says the Congressional Budget Office

Post by David Redszus » Wed Apr 11, 2018 12:48 am

Firedome8 wrote:
Tue Apr 10, 2018 7:25 pm
David Redszus wrote:
Tue Apr 10, 2018 5:04 pm
j-c-c wrote:
Tue Apr 10, 2018 1:33 pm


So who exactly is making out on this ballooning deficit that is behind the excessive spending?

I say everyone.
Who has to pay this money back?
It can not be paid back. Imho
One way or another, it will always be paid back...by the citizens who did not benefit at all. :(

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Re: Republican tax cuts to fuel historic U.S. deficits says the Congressional Budget Office

Post by Firedome8 » Wed Apr 11, 2018 9:19 am

David Redszus wrote:
Wed Apr 11, 2018 12:48 am
Firedome8 wrote:
Tue Apr 10, 2018 7:25 pm
David Redszus wrote:
Tue Apr 10, 2018 5:04 pm


Who has to pay this money back?
It can not be paid back. Imho
One way or another, it will always be paid back...by the citizens who did not benefit at all. :(
Agree

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