National University System Institute for Policy Research

(858) 642-8498 Get Started

EconoMeter ponders whether a higher deficit is OK with a tax cut?


Friday, September 22, 2017

View Article

Sen. Bob Corker worries about tax cuts adding to the deficit.Sen. Bob Corker, R-Tenn.,says he remains deeply concerned about enacting tax cuts that add to the deficit but suggested Republicans may not rely on traditional economic scoring models when assessing the fiscal impact of proposed $1.5 trillion tax cut. (AL DRAGO / New York Times)

Kelly Cunningham, National University System - NO: It is a fallacy to focus on taxes while ignoring government debt. Reshuffling the huge budget in favor of certain interest groups, without actually confronting massive debt liabilities, is a pointless exercise in compounding debt. Burdens imposed on the private sector whether by taxation or government spending are simply stages in the same process of cost and redistribution. To keep increasing government spending while cutting taxes only spreads the burden around by a different manner.