Something To Think About

Charlottesville

June 16, 2025

I’ve been doing a lot of (too much?) thinking about this tax bill going through Congress.

If we are going to reduce taxes, shouldn’t we start with the poorest of us, those who are most likely to spend their tax savings?

We’ve heard for 40 years that tax cuts spur economic growth. Yet there is, based on my research, no hard evidence to conclude that, especially when tax rates are arguably already low.

I don’t get how we are supposed to accept that we should cut taxes when (1) we are running a deficit combined with (2) the large national debt (as percent of GDP) that we have. The current administration has not found the $2 trillion in annual savings we were promised.

We treat these CBO projections of the ten-year effect on the debt as certain. The projections don’t take into effect the impact of uncertain one-time events such as pandemics, wars, etc. when we will no doubt increase spending above what is projected.

Bother. Continue to be pissed off.