Of course Donald Trump’s tax cuts are in trouble, by Brett Arends

There’s No Fooling the numbers. From Brett Arends on a guest post at theburningplatform.com:

Older Americans don’t want benefits slashed — and they vote

Wall Street has been betting that Donald Trump will get his big tax cut plan through Congress — which would be supposedly good for stocks and the people who own them.

But those tax cuts were always a long shot — even before the health-care debacle.

The political pundits can jawbone all they want. But the logic is painfully simple:

1. Even with tax rates as they are, the U.S. budget is heavily in deficit and the national debt is predicted to keep spiraling upwards — as the Congressional Budget Office has confirmed.

2. Tax cuts will increase that deficit still further. (No, tax cuts do not “pay for themselves,” unless maybe you are cutting them from those ridiculous 70%-90% levels seen after World War II. Cutting taxes today might in theory stimulate enough extra growth to clawback some of their cost, but they will not generate a net gain.

3. Republicans cannot credibly push a plan that increases the deficits, because most of them — including Donald Trump — ran on a platform of saying the deficit, and the spiraling national debt, is a disaster.

4. Therefore, if Republicans want to pass the tax cuts, they will need to cut federal spending.

5. Trump is already pushing to raise spending on defense and infrastructure, making the challenge even greater.

It is impossible to cut spending overall without cutting Social Security and Medicare as well as Medicaid.

6. Mathematically, it is impossible to cut spending overall without cutting Social Security and Medicare as well as Medicaid. Along with debt interest, which cannot be cut, they already take up 58% of the budget and that figure is rising. Throw in defense and veterans and we’re talking about 77% of the budget now, and an estimated 83% in 10 years.

To continue reading: Of course Donald Trump’s tax cuts are in trouble

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s