In another burst of creative thinking, reversing a tax increase and unwinding deals that have not yet been implemented would cause economic catastrophe.
The letter from Solicitor General D. John Sauer and assistant attorney general Brett Shumate claims the U.S. would be on the hook to repay trillions of dollars it hasn’t actually been paid, from deals that haven’t yet been fully signed.
“If the United States were forced to pay back the trillions of dollars committed to us, America could go from strength to failure the moment such an incorrect decision took effect,” they wrote.
"These deals for trillions of dollars have been reached, and other countries have committed to pay massive sums of money. If the United States were forced to unwind these historic agreements, the President believes that a forced dissolution of the agreements could lead to a 1929-style result.
“In such a scenario, people would be forced from their homes, millions of jobs would be eliminated, hard-working Americans would lose their savings, and even Social Security and Medicare could be threatened.”