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The debt is going to greatly increase, just like last time he was in.Trump’s agenda, particularly the extension of his 2017 tax cuts that are otherwise scheduled to expire in December, would add substantial new debt to Americas’s existing borrowings. The Congressional Budget Office (CBO) has costed an extension of the tax cuts at $US4.6 trillion over a decade.There’s also Trump’s campaign promises of removing taxes on tips, overtime, social security benefits and increasing the cap on federal tax deductions for state and local taxes.The Committee for a Responsible Federal Budget has said that eliminating the tax on tips alone would cost the government about $US200 billion over a decade. It costed Trump’s overall policies at a net $US7.75 trillion over a decade.Trump is expected to start his second term as president with a barrage of executive orders on his first day, including declaration of a national emergency at the US-Mexico border, a rescission of the Biden administrations diversity, equity and inclusion policies, withdrawal of limits on drilling offshore and on federal lands and new rules to change the way federal employees are hired and fired.There are significant costs associated with Trump’s plan to deport millions of illegal immigrants and other elements of his agenda, the most financially significant of which is the extension of tax cuts. Resolving the debt ceiling blockage to new spending will be critical to implementing his plans.Getting the fiscal conservatives onside may involve big cuts to government spending, which is what Elon Musk and Vivek Ramaswamy have been charged with doing in their so-called “department of government efficiency” (it’s not a government department but an advisory council).Musk’s original target of $US2 trillion of cuts to spending has been watered down to “only” $US1 trillion, but even that would, with defence spending regarded as untouchable, involve swingeing cuts to social welfare and Medicaid programs that Trump promised wouldn’t be touched.[URL unfurl="true"]https://www.theage.com.au/business/the-economy/the-58-trillion-shadow-hanging-over-trump-s-return-20250120-p5l5om.html[/URL]
The debt is going to greatly increase, just like last time he was in.
Trump’s agenda, particularly the extension of his 2017 tax cuts that are otherwise scheduled to expire in December, would add substantial new debt to Americas’s existing borrowings. The Congressional Budget Office (CBO) has costed an extension of the tax cuts at $US4.6 trillion over a decade.
There’s also Trump’s campaign promises of removing taxes on tips, overtime, social security benefits and increasing the cap on federal tax deductions for state and local taxes.
The Committee for a Responsible Federal Budget has said that eliminating the tax on tips alone would cost the government about $US200 billion over a decade. It costed Trump’s overall policies at a net $US7.75 trillion over a decade.
Trump is expected to start his second term as president with a barrage of executive orders on his first day, including declaration of a national emergency at the US-Mexico border, a rescission of the Biden administrations diversity, equity and inclusion policies, withdrawal of limits on drilling offshore and on federal lands and new rules to change the way federal employees are hired and fired.
There are significant costs associated with Trump’s plan to deport millions of illegal immigrants and other elements of his agenda, the most financially significant of which is the extension of tax cuts. Resolving the debt ceiling blockage to new spending will be critical to implementing his plans.
Getting the fiscal conservatives onside may involve big cuts to government spending, which is what Elon Musk and Vivek Ramaswamy have been charged with doing in their so-called “department of government efficiency” (it’s not a government department but an advisory council).
Musk’s original target of $US2 trillion of cuts to spending has been watered down to “only” $US1 trillion, but even that would, with defence spending regarded as untouchable, involve swingeing cuts to social welfare and Medicaid programs that Trump promised wouldn’t be touched.
[URL unfurl="true"]https://www.theage.com.au/business/the-economy/the-58-trillion-shadow-hanging-over-trump-s-return-20250120-p5l5om.html[/URL]
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