House GOP banking chairman waves off tax cut deficit concerns, pivots to entitlement reform
On Thursday, the congressional tax scorekeepers at the Joint Committee on Taxation projected that the Senate Republican tax plan would add $1 trillion to the federal deficit, using "dynamic scoring" that accounts for economic growth. "This is the standard by which the GOP has insisted that fiscal legislation should be judged" for 40 years now, notes New York Times business reporter Binyamin Appelbaum. It wasn't the result deficit-wary Republicans wanted, and it led to an overnight rewrite of the tax plan — that plus a parliamentary disqualification of a proposed "trigger" to raise taxes if the $1.63 trillion in tax cuts don't pay for themselves.
Earlier Thursday, House Financial Services Committee Chairman Jeb Hensarling (R-Texas) dismissed the "trigger" idea. "The bottom line is, we'll be able to fill any deficit hole with additional revenues, and we basically saw the same during the Reagan tax cuts, frankly the Kennedy tax cut, you can even go all the way back to the Coolidge tax cut," he told Bloomberg's Kevin Cirilli. "We will be able to raise more revenues, and if not, as a Republican, the answer would be less spending, not more taxes."
The national debt is "the greatest crisis that receives almost no attention in Washington," Hensarling added, elaborating on the spending cuts. "What we need to do is, obviously, reform current entitlement programs for future generations. That's a heavy political lift, but so far we haven't found any help from Democrats."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
On Wednesday, Sen. Marco Rubio (R-Fla.) had similarly suggested cutting future Medicare and Social Security benefits as the next step after passing tax cuts. Calvin Coolidge's tax cuts in 1926, it should be noted, "would substantially contribute to the causes of the Great Depression," the precursor to entitlements, Great Depression historian Robert McElvaine wrote in The Washington Post on Thursday. "Yet the plain fact that the trickle-down approach has never worked leaves Republicans unfazed." You can read more at the Post.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Long summer days in Iceland's highlands
The Week Recommends While many parts of this volcanic island are barren, there is a 'desolate beauty' to be found in every corner
By The Week UK Published
-
The Democrats: time for wholesale reform?
Talking Point In the 'wreckage' of the election, the party must decide how to rebuild
By The Week UK Published
-
5 deliciously funny cartoons about turkeys
Cartoons Artists take on pardons, executions, and more
By The Week US Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
By Peter Weber, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published
-
Ports reopen after dockworkers halt strike
Speed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
By Peter Weber, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published