Thursday, September 28, 2017
It helps to have a white president
And a Republican too. Without these vital elements we might still have the mighty deficit hawks whining about the Yuge! deficit despite it being largely a product of their activities. And with the latest tax cut plan designed to shift the tax burden off the wealthy, people and corporations and onto the dumb schmucks who voted for them, the hawks are quiet.
In 2001, when surging budget surpluses fueled hopes of extinguishing the national debt, a pitched battle broke out over President George W. Bush’s proposed $1.6 trillion tax cut. Nevermind that the tax cut’s 10-year tab was supposed to leave behind more than $3 trillion in surpluses — Democrats and some Republicans said that the tax cut was just too large.They know full well what long term damage they do but as long as it is to their short term benefit they are all for it.
Fast forward to President Trump’s Washington, where the budget deficit for this fiscal year is expected to near $700 billion and the federal debt has topped $20 trillion.
A new tax cut is emerging to rival those of the Bush years, and the deficit hawks have hardly peeped.
“It’s a great talking point when you have an administration that’s Democrat-led,” said Representative Mark Walker, Republican of North Carolina and the chairman of the Republican Study Committee, a group of about 150 conservative House members. “It’s a little different now that Republicans have both houses and the administration.”
For years, Republican lawmakers lamented the soaring national debt, pressing for spending cuts and clinging to the mantle of fiscal responsibility. But last week, Senate Republicans hammered out a deal to allow for as much as $1.5 trillion in tax cuts, betting that supercharged growth will make up for lost revenue, a potentially dubious prospect. The tax plan outlined Wednesday by the White House and Republican leaders in the House and Senate could cost more than $2 trillion over the next decade, according to a preliminary estimate by the Committee for a Responsible Federal Budget.
This month, the majority of Republicans in the House and the Senate voted to raise the debt limit without doing anything to rein in spending.
Republican lawmakers are pushing to increase military spending by tens of billions of dollars, topping even Mr. Trump’s request for a beefed-up military. Democrats are sharing in the fiscal intemperance, lining up behind a “Medicare for all” proposal despite having no definitive plan for how to pay for universal, government-provided health coverage.
And as Congress mulls large tax cuts, the tabs for Hurricanes Harvey, Irma and Maria keep rising.
When Mr. Bush took office and pushed for a big tax cut, the fiscal outlook was strong. The Congressional Budget Office in 2001 was projecting $5.6 trillion in budget surpluses over 10 years.
Now, the budget office forecasts that deficits will total $10.1 trillion over the next decade. The deficit is expected to top $1 trillion a year in 2022 and keep growing from there. Federal debt held by the public is at the highest level since shortly after World War II, at 77 percent of the gross domestic product.
“I think the greatest threat to our nation is us,” warned Senator Bob Corker, Republican of Tennessee and a member of the Senate Budget Committee. “The way we handle our finances, we as a nation are the greatest threat to our nation. It’s not ISIS. It’s not North Korea. It’s not ascendant China. It’s not Russia. We are the greatest threat.”
But such voices are strangely quiet these days in Washington. Even Mr. Corker seems accommodating.
Subscribe to Posts [Atom]
Post a Comment