tequila4kapp said:
Anarchistbear said:
Meanwhile outside the penny arcade Repubs are working to extend the current tax cut s at a cost of 4.5 trillion. Problem is they want to add new incentives- repeal SALT, don't tax tips, social security, overtime- costing another trillion or so
An overlooked element of DOGE is this question: to what end? Is it to reduce the size of government and balance the budget? Or is it to realign the federal government ideologically toward Trump while deficit spending the same amount (ie, all these DOGE savings get spent on tax cuts and infrastructure spending).
Bingo!
I would say that it is the LATTER given that the Administration is using terribly optimistic assumptions on how much "growth" will be generated via the extension of tax cuts.
Instead of reducing spending to offset the entire tax cut, the House budget plan relies on an overly optimistic $2.6 Trillion in higher revenues from assumed faster economic growth.
Given the tariffs, foreign retaliation, and immigration restrictions that all add up to increased inflation and higher interest rates, I certainly question such an overly optimistic $2.6 Trillion in higher revenues.
Everyone should.
