G.O.P. Tax Cut Draining Treasury Faster Than Expected
This discussion thread was locked as off-topic by muriel_volestrangler (a host of the Latest Breaking News forum).
Source: Vanity Fair
One of the many things confirmed by the great tax-bill melodrama of 2017 is that Republicans only pretend to care about fiscal responsibility when Democrats are in power and tax cuts arent on the line. With the opportunity to slash the corporate rate nearly in half, cries of I wont endorse a bill that adds one penny to the deficit! evaporated, and tacking on $1.5 trillion became no big deal. Tax cuts, we will soon be reminded, dont grow on trees, and the social safety net must be pared back in exchange. For now, though, Republicans are still in the trickle-down honeymoon phase, seeing in every corporate press release more confirmation that America has been made great again. Which makes it somewhat ironic that the Treasury is now burning through its cash reserves at an even more spectacular rate.
According to the nonpartisan Congressional Budget Office, the federal government will run out of money even sooner than expected, thanks to the new tax legislation, which is estimated to lead to a fall in revenue of $136 billion in 2018. A default on debts had originally been forecasted for late March or early April. But now, because of the new withholding tables, withheld receipts are expected to be less than the amounts paid in the comparable period last year. That, combined with the fact that the Treasury generally issues a high number of tax refunds in February and March, means that the $272 billion in cash the Department had on hand as of Tuesday will quickly dwindle. If the debt ceiling isnt increased by the first half of March, the C.B.O. cautioned on Wednesday, the government would be unable to pay its obligations fully, and would be forced to delay payments, default on its debts, or both.
Read more: https://www-vanityfair-com.cdn.ampproject.org/c/s/www.vanityfair.com/news/2018/02/the-gop-tax-cut-is-draining-the-treasury/amp
Iliyah
(25,111 posts)SAD
laserhaas
(7,805 posts)Who probably thinks it is a good thing should the U.S. goes bankrupt.
joshdawg
(2,655 posts)he became used to it. So what if it's the economy of the United States. He doesn't care. He's made his billions and made sure his cronies made theirs.
BillyBobBrilliant
(805 posts)more in my paycheck for the entire month.
Old Terp
(464 posts)and they are not taking out enough to cover my 2018 taxes. Most Americans will not realize is this happened to them until after the election when they do their 2019 taxes in 2019.
Botany
(70,754 posts)..... all part of the plan.
laserhaas
(7,805 posts)while Rilumsfeld stated (even before false trillion dollar wars) that the Pentagon had lost $2.3 Trillion..
Which the press has never sought a call to account.
raccoon
(31,161 posts)lapfog_1
(29,271 posts)Because it has to do with the Bond markets...
US has to borrow more money to cover shortfalls in revenue due to tax cut.
China has decided to remain neutral on buying US debt.
US has had to raise the yield to sell the debt. Corporations also sell debt to cover short-term cash flow. They have to match the yields that the US government now offers. That increased cost will likely result in lower corporate profits.
lower expected profits... stock prices go down.
Thanks, Repukes!!!
charliea
(260 posts)12:24 pm PST:
Dow 30
25,643.66
-543.05(-2.07%)
lapfog_1
(29,271 posts)it was down 630 earlier.
edit to add - if this follows the pattern of "corrections" of the past... Monday will be worse.
niyad
(114,393 posts)Skittles
(153,548 posts)homegirl
(1,441 posts)411 points!
Gothmog
(146,501 posts)Vinca
(50,373 posts)The reason for taxes is to pay the bills. Republicans don't grasp this concept. Don probably thinks we can file for bankruptcy.
They_Live
(3,253 posts)will bail us out....
alarimer
(16,245 posts)Cue Ryan's calls for cuts to SS and Medicare.
mahatmakanejeeves
(57,976 posts)hibbing
(10,123 posts)My idiot (inherited brazillionaire) is trying replicate the Kansas miracle. Revenue is down, so what is he proposing? Massive tax cuts to the ruling class of course and slashing any and all programs that might possibly benefit the average citizen.
Peace
Delmette2.0
(4,183 posts)homegirl
(1,441 posts)The Dow is down 411 points! Not sure but I think when it sinks 500 they stop trading. Will Mr. Trump take credit or will he blame, anyone but him?
spooky3
(34,608 posts)Ilsa
(61,722 posts)until the broader market gauge, the S&P 500, falls at least 7 percent, what's called level 1.
dalton99a
(81,919 posts)Angry Dragon
(36,693 posts)BigmanPigman
(51,753 posts)bankrupt and kill as many poor, elderly and sick people as possible. More will be left for them.
Lucky Luciano
(11,274 posts)The rich dont remain rich unless they are rich in terms of percentile ranking!
paleotn
(18,065 posts)while campaigning. He's a deadbeat. Why not make the federal government a deadbeat as well?
Tommy_Carcetti
(43,243 posts)muriel_volestrangler
(101,491 posts)Please continue discussion there, or repost in GD. Thanks.