The 119th Congress began with calls from both Republicans and Progressive economists for addressing the national debt, driven by rising long-term interest rates and the cost of extending tax cuts. Concerns about a possible tipping point leading to a catastrophic adjustment due to large deficits pushing up interest rates while growth remains steady are growing. Republicans propose spending cuts, while Democrats advocate for more revenue to support increasing retirement benefits eligibility, as mandatory spending rises. If the 2017 tax cuts were extended, deficits would grow by $3.7 trillion over the next 10 years, highlighting the need for a tax system that can keep up with rising costs.
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