New Tax Law Impact

[Happy2BaMom]

On 3/6/2019 at 10:09 AM, Arctic Mama said:

Question - what do you think would have happened with federal spending and the deficit with another party controlling the White House and Congress?  Do you think the deficit would have gone down, or gone up by a lower rate?  What about money in paychecks and pockets?

 

I am always fascinated by the answer given on this question.  The deficit drives me bonkers, but no one ever seems willing, in any majority, to actually make the spending cuts needed to reduce it. Increasing revenue only works until you run out of other people’s money, too, especially when higher tax rates changes economic behavior for individuals and businesses.  

Hubby still hasn’t done our taxes, but he did watch the withholdings like a hawk. That seems to be what has skunked a few people this year who are used to bigger refunds.  

 

I think it's safe to say that there wouldn't have been a tax cut, but other than that I don't know and, TBH, I don't really care. My statement wasn't so much meant to be partisan as it was/is an observation of historical fact. The U.S. has now cut tax revenue and increased spending, and as such, is projected to be running annual deficits of ONE TRILLION+ dollars every year going forward. Most people in this country do not seem bothered by this. I guess everyone is just assuming that we will escape the fate of every other civilization that has done the same thing?

According to the Congressional Budget Office...."interest payments will rise from $325 billion last year to $928 billion by 2029, a nearly threefold increase. If tax cuts and spending increases are extended, interest will exceed $1 trillion and set a new record as a share of the economy....The federal government will spend more on interest than on Medicaid or children by 2020. By 2024, interest will match defense spending.... interest is on course to be the single largest government program within three decades ".

I am concerned about future generations, and about the consequences they will experience as a result of our decisions. I am truly concerned about THEIR paychecks and pockets. Most people are obsessed only about their own. Even if they say they are concerned (about the future generations), ignoring or being OK with one trillion dollar deficits pretty much negates their words, IMHO.

And this will be my last post on the subject, as I don't want to hijack the thread any further.

ETA: I think politicians don't care because the American people don't care. There have even been studies done, asking if responders if they are concerned about the deficit: "Oh yes, yes, very concerned." Then the same population was asked if taxes should be raised or spending should be cut. The most frequent response was "Neither."

 

Edited March 26, 2019 by Happy2BaMom