2017 Deficit $666B, Debt increased $700. (military, rating, economy, government)

[Leo58]

Something that gets to me every time I hear talk of a Balanced Budget Amendment:

It is mostly conservatives who call for a balanced budget, but if such an amendment were to go into effect today, it would trigger immediate and massive tax increases. Why? Because the alternative would be draconian cuts, not just in discretionary spending, but also in entitlements and defense. And neither party has the guts to do so.

[Finn_Jarber]

Originally Posted by Leo58

Something that gets to me every time I hear talk of a Balanced Budget Amendment:

It is mostly conservatives who call for a balanced budget, but if such an amendment were to go into effect today, it would trigger immediate and massive tax increases. Why? Because the alternative would be draconian cuts, not just in discretionary spending, but also in entitlements and defense. And neither party has the guts to do so.

They talk a good talk when they are in the opposition, but this is how they rule every time they are in power. There are some exceptions, like Rand Paul. He stood up in January and said we can't afford the GOP spending plan, and he was right. Yesterday he stood up and said we don't have the money for the wall, and he is right again. Unfortunately his own party is not listening.

Yesterday China said they are looking into other options instead of US debt.

[blktoptrvl]

Originally Posted by evilnewbie

Are you guys willing to cut spending? No? I am shocked /end sarcasm

Sure, start by cutting that excessive military spending.

[GotHereQuickAsICould]

Originally Posted by Finn_Jarber

2017 was the largest deficit since 2013. We'll see how things look in 2018 when the revenues fall further due to the tax cuts.

...
In FY 2017 the federal deficit was $666 billion. But the gross federal debt increased by $700 billion. Here is why.

Stock market increased more during Obama's first year in office than it did during Trump's first year.

Job growth is slowing down. In December, it was barely above jobs needed for new people entering job market.

National Debt increased by $700 billion.

Dollar lost 10% of value.

Things seem to be slowing down.

[Ringo1]

Remember when Republicans use to clutch their pearls and wring their hands over the deficit?

[JAMS14]

Remember all those threads by conservatives right here on C-D from 2009 to 2016 screaming about the out of control deficit under Obama?

Now, with a Republican president, those same posters are channeling Dick Cheney.

But the next time there is a Democrat in the White House we will return to the screaming about the deficit being out of control.

Lather, rinse and repeat.

[nicet4]

Originally Posted by Finn_Jarber

2017 was the largest deficit since 2013. We'll see how things look in 2018 when the revenues fall further due to the tax cuts.

That 666 is a creepy number....

https://www.usgovernmentspending.com...cit_chart.html

Deficit: The amount by which the government’s total budget outlays exceeds its total receipts for a fiscal year. —US Senate Budget Committee

In FY 2017 the federal deficit was $666 billion. But the gross federal debt increased by $700 billion. Here is why.

Contrary to what most people think cutting taxes does not always cut revenue to the US Treasury.

Let's take a look at the before and after figures of the Kennedy tax cut.



With taxes cut why did revenue to the treasury go up?

In all historical tax cuts not one time has revenue to the treasury significantly dropped. Yes, it did drop very slightly under the Reagan tax cut but the drop was nowhere near what the decrease in taxes were.

Those people who believe that a 20% tax cut will result in a 20% decrease to the treasury have NEVER been right in all American history.

[moneill]

Originally Posted by Loveshiscountry

It isn't about revenue. It's about spending. What part of that don't you get?

ACTUALLY -- it is about both.

No point in increasing revenue and then increasing spending.

It's kind of basic accounting.......

[Finn_Jarber]

Originally Posted by nicet4

Contrary to what most people think cutting taxes does not always cut revenue to the US Treasury.

With taxes cut why did revenue to the treasury go up?

In all historical tax cuts not one time has revenue to the treasury significantly dropped. Yes, it did drop very slightly under the Reagan tax cut but the drop was nowhere near what the decrease in taxes were.

That is what the GOP is wishing for, but even they agree the damage will be $1.5 trillion.

If JFK, Reagan, Bush, Obama tax cuts had been permanent solutions, we would not have been forced to cut them again. But then again, we were not forced, we cut them when economy was doing fine. Timing could not have been worse.

Lets hope for the best, but it does not look good when even the loudest proponents say it will increase the deficits, then you should probably listen.

[greywar]

Originally Posted by nicet4

Contrary to what most people think cutting taxes does not always cut revenue to the US Treasury.

Let's take a look at the before and after figures of the Kennedy tax cut.



With taxes cut why did revenue to the treasury go up?

In all historical tax cuts not one time has revenue to the treasury significantly dropped. Yes, it did drop very slightly under the Reagan tax cut but the drop was nowhere near what the decrease in taxes were.

Those people who believe that a 20% tax cut will result in a 20% decrease to the treasury have NEVER been right in all American history.

Context is key. If you are so fond of kennedys tax cuts you have to put them in context. His cuts were to a 65% rate, down from a 90 or 95% rate (I can't recall off the top of my head). And theres a LOT of other stuff going on during these times.

If you think cutting it now when tax rates are fairly low will pay off like it did in the past you are delusional.