If the cap is not removed, then a tax cut will be very problematic.
This is going to be bloody. It has the potential to mark the next two years prominently.
The GOP is trying to repeal the laws of arithmetic by using “dynamic scoring” to price the billionaire tax cuts. The only people that can temper that are the bond traders if they crash the bond market on inflation fears as a result. That’s what happened to Liz Truss in the UK.
https://www.politico.com/news/2024/11/29/republicans-major-fight-cost-tax-cuts-00191006
intercst
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The solution would be to do what Michigan did, repeatedly, under Shiny control: offset the “JC” tax cuts with tax increases on the lower end of the income scale. Then there is no net increase in money in people’s pockets, nor an increase in government debt.
Steve
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The doubling time of our debt has slowed by half from 4 years to 8. We are making some interesting progress. The doubling time according to Public Finance class in 1989 was 4 years.
From Politico article
At the same time, the federal debt has nearly doubled since 2017, and the increase in interest rates means payments on the debt have become far more onerous. Servicing the debt now costs almost $1 trillion annually.
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