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National Debt, Budget Deficits, and President Trump’s Tax Reform

‘Everybody talks about the weather, but no one does anything about it”  - Mark Twain

Question: Do a tax cuts pay for themselves? Answer “They do not.” – Alan Greenspan  

 

Dear Mr. and Mrs. Citizen: 

Just a reminder that you and the Mrs. owe me $124,000 as of today, and also each of your kids owes me $62,000 as well. And it’s growing bigger each minute.  Please propose to me your re-payment plan.

Thank you,  Your government

The national Debt is $20 Trillion. Like Mark Twain’s weather – we all talk about it, but doing something about it is another story. It’s easy to blame –  we hear President Obama doubled the debt; President Bush had the largest deficits ever to pay for his wars; that the Trump tax cut and “trickle down economics” will fix it.  But much of this is just talk.

Today in 2018 unemployment is low; the stock market is strong; and in the last administration the deficit was getting smaller. It’s time to address the debt and the deficit proactively and honestly.

  • Debt Ceiling:  Instead of raising the debt ceiling every few months with the concurrent “shut the government down knife fight on CNN and Fox” – I propose we set a limit on the % of debt to GDP and when that limit is exceeded, spending cuts and tax increase have to be passed. This will force an honest discussion instead of today’s approach to use the debt limit vote as nothing more than a political soap box with the government shut down as political leverage.

 

  • Budget Deficit:  Congress has passed continuing resolutions (CR’s) to operate the government in 41 of the past 50 years. Budgets proposed by the Presidents always arrive “Dead on Arrival” for the other party. The math is simple: if government spending is 20% of our GDP, then tax revenue also has to be 20% of GDP.  I will support a budget deficit percentage of GDP limit, one that will sequester spending when exceeded.

 

  • President Trump’s Tax Reform:  We have had the Reagan Tax reform and cut, the Clinton middle class tax cuts, the Bush middle class tax cuts, and now the Trump middle class tax cut.  It’s a wonder we pay any taxes after all these cuts?  The Trump tax cuts primarily benefit corporations and the wealthy at what cost to long term fiscal responsibility?  A deficit limit as a percentage of GDP  I endorse will force honesty on the Trump tax rates as well as Congress’s spending habits.  We need fiscal responsibility to avoid the $124,000 bill our younger citizens will have to address in crisis mode if we don’t take action today.  It’s time to make Congress work again, in a bi partisan problem solving process to return to fiscal responsibility rather than political expediency.