Sunday, July 6, 2025

Reagan's Neo-Nazi Revolution 2.0: the Drumpf Dump: Heather Cox Richardson, another $50 trillion loss?

 

July 5, 2025

From 1981 to 2021, tax cuts moved more than $50 trillion from the bottom 90% to the top 1%, and Penn Wharton projects the top 10% of households will receive about 80% of the total value of this law, too. Those in the top 20% of earners can expect to see nearly $13,000 a year from the bill, while those in the bottom 20% of households will lose about $885 in 2030 as the pieces of the law take effect.

Past tax cuts have also driven budget deficits and increases in the national debt, and like them, this law will increase the deficit by about $3.4 trillion over the next ten years, according to the nonpartisan Congressional Budget Office. The CBO also projects that interest payments on that debt will cost more than $1 trillion a year.

Sam Goldfarb and Justin Lahart of the Wall Street Journal noted on Thursday that economists, investors and politicians are sounding the alarm that the U.S. is “bingeing on debt” when there is no national emergency like a pandemic or a war to require taking on such debt. The measure will raise the nation’s debt ceiling by $5 trillion.

The Republican reliance on tax cuts to increase economic growth has inspired them to cut public programs since 1981. The Republicans’ new law continues the cuts begun as soon as Trump took office, cutting $890 billion from Medicaid over the next ten years, and about $230 billion out of the Supplemental Nutrition Assistance Program that provides food assistance for low-income Americans. It cuts tax credits for wind and solar power while promoting fossil fuels.

 

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