Bloomberg reported today that the House Ways and Means Committee is considering adjusting President Trump’s tax plan and phasing it in, due to the impact on the Federal budget –
House tax writers are discussing a gradual phase-in for President Donald Trump and Republican leaders’ proposed corporate tax-rate cut — on a schedule that would put the rate at 20 percent in 2022, according to a member of the chamber’s tax-writing committee and a person familiar with the discussions.
The phase-in plan is under discussion, but isn’t yet final, said a member of the House Ways and Means Committee, who asked not to be named because the discussions are private. Other members said they planned to discuss the proposal during a private meeting Monday afternoon.
After eight years of massive deficits under the Obama regime, Congress is now concerned about US debt!
Obama set all time world records for debt under his leadership and Congress obliged by allowing Obama’s massive spending to occur. President Obama doubled the US debt from $10.6 trillion when he was first inaugurated to $19.9 trillion on the day of President Trump’s inauguration for a total increase of $9.3 trillion. Another measurement from the US treasury shows Obama increased the debt by $9.5 trillion. Overall, Obama doubled the debt.
Obama set records for the largest deficits in US history. No other President has been close. He increased US debt by nearly $2 trillion his first year in office ($1.9 trillion). He set the record for the most year with deficits over $1 trillion (six of his eight years) and he accumulated an annual average deficit of $1.2 trillion. No other President has come close to these kinds of numbers.
President Trump to date has accumulated a deficit of $500 billion. However, unlike Obama who oversaw the lowest rates in US history over his term of almost zero percent, President Trump has had to endure three rate increases which correspond with added debt through increased interest payments.
In the past 10 years there have been only four Fed Funds rate increases. Three of those increases occurred after President Trump won the election on November 8th, 2016. On the other hand, after Obama was elected President the Fed decreased the Fed Fund rate to zero and kept it at this rate for most of Obama’s eight years in office.
Suddenly, Congress is concerned about debt! What a joke. The reality is that Trump’s tax reductions will spur the economy and likely reduce Federal debt through larger tax revenues as has always happened when similar plans were approved.
Congress needs to know that the middle class wants, needs and demands a tax reduction. It is good for hard working Americans and for the economy. We cannot wait – Any member who votes against tax reductions now will be primaried out!