|An inside view of deliberations in the Congressional Joint Committe on Taxation.|
In the movie Animal House, they used to yell "Food Fight" at random times, and everyone would throw food at each other. It made no sense, and there was no rhyme or reason to it. That is the same decision making process for having a tax cut. It's completely random and makes no sense. Our federal government operates at a large deficit that almost all economists regard as dangerous and unhealthy. There is no surplus to give away in the form of a tax cut.
The money has already been spent and we have to borrow to cover existing obligations. It's pathological to believe that Americans can just vote themselves additional money, without consequences to the stability of the economy and money supply. The Congressional Budget office says that the current tax plan will increase the deficit by $1.7 TRILLION DOLLARS in the next ten years. Is that sound fiscal policy?
Congress needs to cut spending and increase revenue. They don't have the stomach to do either one, and instead inculcate the belief that federal spending is free of cost to the American people. Thus, they plan to destabilize the country by giving away tax cuts like Halloween candy, while also increasing spending on worthy projects such as wars in the Middle East. Last time we did this, the economy almost imploded and we needed a trillion dollar bailout of the banks in 2008-2009. Here we go again....