For the first time since 2017, taxes will be on the main stage in Washington DC. With much of the Tax Cuts and Jobs Act (TCJA) expiring at the end of 2025, President Trump and the Republican Congress will be hard at work looking to extend, make permanent, or change the major tax bill that was a cornerstone of Trump’s first term.
The 2017 bill was a win for taxpayers. It put in place needed changes to the federal tax code to increase the country’s competitiveness on the global stage and was a benefit to American families as it doubled the child tax credit from $1,000 to $2,000 per child. Like most things that come out of DC it also had some items that were problematic and I hope those issues are addressed in this year’s upcoming discussions.
One issue that was not directly addressed in the 2017 legislation that I hope to see covered is a serious effort to cut spending in the federal budget. Yes, we want to see the tax cuts in the TCJA made permanent and other tax cuts made, but also it is time for lawmakers to use their power to take scissors to the federal budget and start making cuts that will lead us to a balanced budget and put the country on track to start getting out of debt.
According to the Committee for a Responsible Federal Budget (CRFB), a nonpartisan, non-profit organization dedicated to informing the public about federal fiscal policy issues, the national debt will exceed 106% as a share of GDP in 3 years, the highest that number has ever been. Interest payments will cost $892 billion this year, which is more than the federal government spends on defense or Medicare. The committee estimates that if we continue at current trends that the national debt will reach nearly $51 trillion in 10 years.
These facts are daunting.
The amount of spending our lawmakers have gotten the nation into seems so large that most Americans can likely not envision a state where our country runs on a balanced budget and pays off its debts.
That needs to change.
Balancing the budget and cutting taxes is a clear win for taxpayers. If the nation wasn’t spending $892 billion on interest, that is real money that can go towards public safety, infrastructure or another tax cut.
My hope for President Trump and the Republican Congress is that they get serious about addressing the spending problem in DC. To focus on ensuring that Americans have necessary programs and services to help our country succeed but that the nice to haves or luxuries that are found in the budget are cut and that the money saved is used to cut taxes and pay down the national debt.
According to The U.S. Department of the Treasury, the country has not had a balanced budget since 2001. That is unacceptable. But it won’t change until we push our elected officials to make that change.
While we support the President and Republican leaders in their efforts to continue to bring tax relief to Americans we call on them to also halt the out of control spending habits our country has fallen into and take this year as an opportunity to get our fiscal house in order.
We all know in our family budgets there is freedom that comes from being debt free and spending within your means. A country that is built on the ideals and principles of liberty should pursue those same goals. We know this cannot be achieved overnight, but my hope is that the President and his allies in Congress do more than just cut taxes but put the country on track to curb spending for decades to come.