Arthur J. Villasanta – Fourth Estate Contributor
Washington, DC, United States (4E) – The GOP’s Tax Cuts and Jobs Act of 2017 rammed through Congress without input from Democrats will add $1.51 trillion to the national debt before accounting for interest, and will impoverish the United States, said former U.S. Secretary of the Treasury Jacob Lew.
This massive deficit will likely cause debt to exceed the size of the economy by 2028, according to Congressional estimates. Of the $1.5 trillion, $1 trillion will come from business tax cuts; individual tax cuts will account for another $300 billion while the repeal of the estate tax will add $200 billion.
“It’s a ticking time bomb in terms of the debt,” said Lew. “You cannot run a fiscal policy by spending trillions of dollars you don’t have at a time that the economy is doing well.”
Analysts agree that a bill adding $1.5 trillion to the debt is bad news for the budget. The bill will accelerate the growth of debt over the next decade and beyond, and make it much harder to put debt on a sustainable path.
“The next shoe to drop is going to be an attack on the most vulnerable in our society,” said Lew.
“How are we going to pay for the deficit caused by the tax cut? We are going to see proposals to cut health insurance for poor people, to take basic food support away from poor people, to attack Medicare and Social Security. One could not have made up a more cynical strategy.”
“What we’ve seen is a tax cut that spends money we don’t have to have very concentrated benefits for global corporations and the top 1 percent, and it’s leaving us broke.”
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