Trumped or stumped? The tax cut, the debt ceiling and riding the gravy train

Source: Cobden Centre
by Colin Lloyd

“The current US debt ceiling is set at $19.8trln. Debt levels are already close to that level and special accounting measures have already been implemented by the US Treasury. This year alone total federal expenditures will be $3.7trln — leaving a tax shortfall of $559bln. Meanwhile, last week, Treasury Secretary, Mnuchin announced the long awaited tax cut plan. It included a proposal to reduce the US corporate tax rate to 15% from the current level of 35%. This, it is estimated by the Committee for a Responsible Federal Budget, will increase the government deficit by $5.5trln over the next decade. The Trump administrations other spending plans remain on the agenda, including $1trln for infrastructure, $54bln for the military and — assuming the Mexicans can’t pay and won’t pay — $10bln for the Southern Border Wall. How can this possibly add up? Through spending cuts, is the simple answer.” (05/11/17)