In a Wednesday tweet, Sen. Ron Wyden (D-OR) claimed that Congress could cut the budget deficit by $23 trillion in a decade simply by eliminating the “defense slush fund” and “the nuclear war slush fund.” In reality, these funds represent the vast majority of discretionary spending over the next decade—and the Senator’s proposal would effectively eliminate US nuclear weapons and leave the country unarmed.
Tag: Fiscal Policy
Republicans Ponder: What if the Trump Tax Cuts Cost Nothing?
Republicans are grappling with an unexpected question: what if their signature tax cuts don’t actually cost the government anything? As the Trump administration touts the economic benefits of the Tax Cuts and Jobs Act, some Republicans are expressing concern that the cuts may not be generating the promised revenue increases. This has led to a growing debate within the party about the true impact of the tax cuts, with some questioning whether they may have actually been a windfall for corporations and wealthy individuals at the expense of the federal deficit.
Tax Reform Requires Stability in the House GOP
The battle for tax reform is teetering on a tightrope, heavily dependent on the stability of the House GOP. If the House’s Republican faction remains strong and united, they can push through long-awaited changes to the tax code. However, if division seeps into their ranks, tax reform could very well tumble into the abyss. In this treacherous political landscape, every move, every vote, counts. The House GOP must hold the line and maintain their unity if they wish to emerge victorious with the tax reform bill intact.
Trump wants you to believe that the US economy is doing terribly. It’s untrue
In his recent public address, ex-President Trump painted a bleak picture of the US economy, claiming it was in a state of decline. However, data from reputable sources such as the Bureau of Labor Statistics and the Department of Commerce contradict this narrative. The unemployment rate has fallen to 3.5%, the lowest level in 50 years. Additionally, GDP growth has been steady at around 2%, indicating a healthy and expanding economy. Therefore, while Trump may attempt to sow seeds of doubt, the evidence suggests that the US economy is far from the abyss he portrays.
U.K. Budget Makes a Big Bet on Spending for Growth
In an attempt to boost the economy, the U.K. government has unveiled a budget that significantly increases spending. This bold move, met with mixed reactions, marks a significant departure from previous austerity measures. Chancellor Rishi Sunak announced a £150 billion ($204 billion) increase in public spending over the next five years. This includes substantial investments in infrastructure, education, and the healthcare sector. Critics argue that the increase in deficit spending could lead to inflation, interest rate hikes, and other economic problems. However, the government maintains that these investments are essential to sustain long-term growth and address long-standing inequalities.