"The Almighty AMT Bill": Trump's Tax Proposal Puts US Budget in Red for a Whopping $2.8 Trillion
Research reveals that Trump's tax legislation could potentially result in the accumulation of trillions of dollars in fresh American debt. - Trump's tax reform proposition likely to escalate federal debt by billions
Hold onto your wallets, folks! According to the latest report from the Congressional Budget Office (CBO), the tax bill proposed by our dear leader, Donald Trump, is about to sink the US economy in an ocean of red ink. The proposed budget deficit? A staggering $2.8 trillion over the next ten years. And guess what? That's even with the positive effects of economic growth taken into account. Without those, the deficit would've been a still-hefty $2.4 trillion.
The "One Gorgeous Bill Act": Stalled in Congress
But don't worry, Republicans are promising a stronger, more prosperous America if this bill is passed. Senate Majority Leader John Thune said as much on Tuesday. The House of Representatives already gave this bill a thumbs-up back in May. The Senate is currently trying to work out a revised version. But here's the catch – both chambers of Congress need to agree on a common version of the bill before it can head to Trump's desk.
The current draft? It extends those sweet tax cuts from Trump's first term that were enacted in 2017, all the way to 2021. But if you're thinking, "What happens when these tax cuts expire at the end of the year?" Well, the solution is as simple as a knife through butter – drastic cuts to the Medicaid healthcare program, which mostly supports low-income and elderly folks.
- Tax Bill
- Donald Trump
- USA
Richer Stockings, Smaller Safety Nets: The Economic Implications
But don't think this tax bill is all doom and gloom. In theory, it's supposed to provide tax relief to the average Joe and Jane, with bigger paychecks and tax breaks on goodies like overtime, tips, and car loans. Sounds like a party, right?
However, fiscal experts warn that this bill will make the tax code a tangled mess, with more stipulations and conditions tied to exemptions and deductions. And let's not forget the cuts to social safety net programs like Medicaid, food stamps, and health insurance. These changes have far-reaching implications.
The Long Game: Fiscal Sustainability and Creditworthiness
So, while the tax bill aims to put more money in your pocket, the long-term financial impact includes a substantial increase in the federal deficit and public debt. That raises concerns about the sustainability of our fiscal policies. And if that's not enough, Moody’s even downgraded the U.S. credit rating because of the tax bill, highlighting the long-term fiscal risks associated with this legislation.
[3]: https://www.taxpolicycenter.org/publications/analyzing-house-republicans-tax-reform-bill-america-s- dividend/full
- The ongoing political debate surrounding the tax law, initiated by President Donald Trump in the USA, primarily revolves around policy-and-legislation, as the proposed bills potentially lead to a significant increase in the budget deficit.
- Despite the tax bill's proposed benefits, such as tax relief for the average citizen, attention is also focused on the long-term economic impact, particularly the rise in public debt and potential downgrades in the USA's general-news credit rating.
