Our federal deficit needs a dose of reality
This is actually a letter to the editor published in the Toronto Star. But it makes the argument that many of us have. The budget deficit is primarily a function of tax cuts. The recent vote by the House of Representatives extends Trump tax cuts which will lead to massive budget cuts in areas where people really need the services currently provided ("House Passes G.O.P. Budget Teeing Up Enormous Tax and Spending Cuts," New York Times). From the NYT:
The House on Tuesday narrowly passed a Republican budget resolution that calls for $4.5 trillion in tax cuts and a $2 trillion reduction in federal spending over a decade, clearing the way for major elements of President Trump’s domestic agenda.
The nearly party-line vote of 217 to 215 teed up a bitter fight within the G.O.P. over which federal programs to slash to partially finance a huge tax cut that would provide its biggest benefits to rich Americans.
The blueprint sets the contours for the legislation that House Republicans will now turn to writing. It puts a $4.5 trillion upper limit on the size of any tax cuts over the next 10 years, but does not dictate which taxes should be reduced, a complex and politically tricky question of its own that could take months to sort out.It also calls for slashing $2 trillion in spending over the same period, without specifying which programs should be cut, though top Republicans have targeted Medicaid and food aid programs for poor Americans. And it directs increases of about $300 billion for border enforcement and defense programs, alongside a $4 trillion increase in the debt limit.
The letter
The government should implement a moratorium on any and all tax cuts. They are economically senseless and politically expedient. The budget deficit issues we have are never going to be solved with tax cuts. That’s all we have done for a long time and deficits have only increased. It’s a bad habit politicians have normalized and they know it. A moratorium on tax cuts in a healthy economy would increase government revenue as the economy grows and expands. To supplement the increase in government revenues — taxes on the rich should be increased moderately. Why some will ask? Because they can afford it and it will not change their lot in life. They will still be rich. They have been the main beneficiaries of past tax cuts which only increased our deficits.
-- Tom Colson, Toronto
This is also an issue in Utah. The Republican Legislature may be the most in lock step with Trump of any of the legislatures in the U.S. E.g., looks like they're going to make adding fluoride to the water illegal ("Utah close to fully banning fluoride in water, stripping cities’ ability to decide," CNN), the Governor is big on supporting immigration crackdowns, the Legislature is cutting the higher education budget some, to focus on degrees that are all about getting jobs, etc.
The state is growing. And growing places need more investment in infrastructure, not less. But the Legislature is focused on tax cuts ("Utah Legislature poised to cut taxes for 5th year in a row," Utah News Dispatch).. So much for funding education and other priorities.
Labels: electoral politics and influence, provision of public services, public finance and spending, tax cuts, taxation
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