Tax cuts are rocketing us into the debt ceiling

HayJenn

Moderator
Jul 2014
70,118
60,112
CA
#1
The financial doomsday clock is ticking, and, thanks to the massive tax cuts passed by Congress in December, the ticks just sped up. Unless Congress gets its act together, the federal government will default on its debt in a few short weeks. This event would set off a constitutional crisis and a global financial crisis. And it would be not some inevitable catastrophe but wholly man-made, created by an inept White House and a Congress too distracted, disorganized or greedy to act in the nation’s best interest.

In November, the Congressional Budget Office projected that Treasury would run through those extraordinary measures around late March or early April. But then Republicans passed their ginormous tax bill. The new law cuts taxes for most Americans this year, which means that withholding from employee paychecks will drop starting no later than mid-February. Individual income tax revenue will therefore be about $10 billion to $15 billion less per month than the CBO previously estimated.

Thus, the CBO says that Treasury will probably run out of money in the first half of March, possibly sooner. In a letter this week to House Speaker Paul D. Ryan (R-Wis.), Treasury Secretary Steven Mnuchin understandably pleaded with Congress to “protect the full faith and credit of the United States by acting to increase the statutory debt limit as soon as possible.”

https://www.washingtonpost.com/opinions/trumps-tax-cuts-are-rocketing-us-into-the-debt-ceiling/2018/02/01/c2229f4a-0795-11e8-b48c-b07fea957bd5_story.html?hpid=hp_no-name_opinion-card-e%3Ahomepage%2Fstory&utm_term=.f39adfa0941c

No wonder this bill was rushed through with obviously no forethought on what this does to the budget or the debt

Good job GOP!!
 
Likes: 2 people
Jul 2013
56,938
62,421
Nashville, TN
#2
Typical Republican “tax cuts followed by massive deficit increases” with a dose of bubble and collapse waiting in the wings
 
Likes: 1 person
Apr 2015
15,331
2,851
Katmandu
#3
The financial doomsday clock is ticking, and, thanks to the massive tax cuts passed by Congress in December, the ticks just sped up. Unless Congress gets its act together, the federal government will default on its debt in a few short weeks. This event would set off a constitutional crisis and a global financial crisis. And it would be not some inevitable catastrophe but wholly man-made, created by an inept White House and a Congress too distracted, disorganized or greedy to act in the nation’s best interest.

In November, the Congressional Budget Office projected that Treasury would run through those extraordinary measures around late March or early April. But then Republicans passed their ginormous tax bill. The new law cuts taxes for most Americans this year, which means that withholding from employee paychecks will drop starting no later than mid-February. Individual income tax revenue will therefore be about $10 billion to $15 billion less per month than the CBO previously estimated.

Thus, the CBO says that Treasury will probably run out of money in the first half of March, possibly sooner. In a letter this week to House Speaker Paul D. Ryan (R-Wis.), Treasury Secretary Steven Mnuchin understandably pleaded with Congress to “protect the full faith and credit of the United States by acting to increase the statutory debt limit as soon as possible.”

https://www.washingtonpost.com/opinions/trumps-tax-cuts-are-rocketing-us-into-the-debt-ceiling/2018/02/01/c2229f4a-0795-11e8-b48c-b07fea957bd5_story.html?hpid=hp_no-name_opinion-card-e%3Ahomepage%2Fstory&utm_term=.f39adfa0941c

No wonder this bill was rushed through with obviously no forethought on what this does to the budget or the debt

Good job GOP!!
I will bet my tax cut bonus against yours that even with the tax cuts taking effect in 2018 that we will add less to the debt in 2018 than we did in Obama's last year 2016, deal?
 
Jul 2013
56,938
62,421
Nashville, TN
#4
I will bet my tax cut bonus against yours that even with the tax cuts taking effect in 2018 that we will add less to the debt in 2018 than we did in Obama's last year 2016, deal?
How about we just humiliate you for a couple of years for being gullible enough to drink the trickle down kool aid
 
Likes: 2 people

HayJenn

Moderator
Jul 2014
70,118
60,112
CA
#5
I will bet my tax cut bonus against yours that even with the tax cuts taking effect in 2018 that we will add less to the debt in 2018 than we did in Obama's last year 2016, deal?
Which has what to do with the actual topic

Obviously this bill was not thought out very well.

And nice how you skip over that individual tax revenue will be billions less per year - not even including the billions of lost revenue for corps.

And where make up that shortfall where?
 
Likes: 1 person
Apr 2015
15,331
2,851
Katmandu
#7
Which has what to do with the actual topic

Obviously this bill was not thought out very well.

And nice how you skip over that individual tax revenue will be billions less per year - not even including the billions of lost revenue for corps.

And where make up that shortfall where?
I listened in on the analyst call for one of my holdings the other day. They are repatriating cash and paying an additional $100 million in taxes that they wouldn't have paid without tax reform.

Expanded economic activity will increase federal tax revenues.
 

HayJenn

Moderator
Jul 2014
70,118
60,112
CA
#9
I listened in on the analyst call for one of my holdings the other day. They are repatriating cash and paying an additional $100 million in taxes that they wouldn't have paid without tax reform.

Expanded economic activity will increase federal tax revenues.
Oh because one analyst say's so?

You do know that 100 million is a one time thing right?

But I do enjoy that every supporter of this tax bill never wants to answer how the shortfall will be made up. Maybe on the backs of our kids?
 
Likes: 1 person
Sep 2011
24,999
17,444
aMEEErica
#10
I listened in on the analyst call for one of my holdings the other day. They are repatriating cash and paying an additional $100 million in taxes that they wouldn't have paid without tax reform.

Expanded economic activity will increase federal tax revenues.
Oh because one analyst say's so?

You do know that 100 million is a one time thing right?

But I do enjoy that every supporter of this tax bill never wants to answer how the shortfall will be made up. Maybe on the backs of our kids?
And it's laughable that from where we are now, someone would actually talk about "growing faster than the debt" here with 20 trill hanging over us...

Bizarroland never learns, when they see such a monumental failure, they double-down on it and cavalierly offer the same feeble justification again...

Thx :popcorn:
 
Likes: 2 people