The tax legislation passed last December, 100% by Republicans (not one Democrat vote in either the house or senate), is either a disaster for, or a huge boon to, the U.S. economy.
Depends on who you ask.
Investors Business Daily (IBD), via its latest editorial, is attempting to give us the answer. And a lot more, both about the tax cuts and the unsustainable level of spending which continues to take place.
In that connection, IBD has put up this table…
…which certainly goes some distance to anwering the question.
But it also contains this dire, bipartisan warning:
This is what we and other backers of the tax cuts had insisted all along. Not that tax cuts would entirely pay for themselves. But that the economic growth they generate would offset much of the costs.
That still leaves the problem of the deficit. By 2022, federal deficits will top 5% of GDP, something that happened only once between World War II and President Obama’s spending spree.
What’s more, national debt is on track to top 91% of GDP by 2025 and reach 96.2% by 2028.
Despite what Democrats and the media insist, the culprit here isn’t tax cuts. It is out-of-control spending, which will be nearly $1 trillion higher over the next decade thanks to recent spending deals.
Even with Trump’s tax cuts in place, federal revenues climb every year as a share of GDP, going from 16.6% this year to 17.5% by 2025. (The post-World War II average for revenues is 17.2% of GDP.)
Unfortunately, spending is on track to climb even faster — going from 20.6% of GDP this year to 23.6% by 2028. (The highest spending ever got under Obama was 24.4% of GDP, and the post-War average is 19.3%.)
This is little short of a disgrace, and shows that Republicans love spending taxpayer money as much as Democrats.
When do our politicians, of both parties, take heed? Ever?
You’re at bat, President Trump. What are you going to do about it?