Stated another way, the United States has a $37 trillion national debt and we all owe a portion. How did we get here? Our Congress spends more than the government takes in revenue.
The last time the U.S. had a balanced budget was in 2001 under Bill Clinton, when Newt Gingrich led the House. Balancing the budget doesn’t mean we would be debt free, but it would demonstrate fiscal responsibility. The last time the U.S. was debt free was in 1835, under President Andrew Jackson.
Understanding this is important, because the GOP controlled House of Representatives has just narrowly passed the reconciliation bill, being called, “President Trump’s One Big Beautiful Bill,” because it contains both expansions and spending and cuts, on which he campaigned. It now goes to the Senate for debate, which will no doubt contain amendments, if approved.
The bill proposes making the tax cuts of 2017, permanent. It focuses on tax reductions for middle-and-lower income Americans by eliminating taxes on tips, overtime income and social security benefits.
It proposes funding for border security, including removal of illegal immigrants and to continue building the border wall. It proposes modest cuts to Medicaid and other social programs, imposing work requirements and often ignored compliance. It is intended to stimulate economic growth, through tax and regulation relief. It also raises the debt ceiling.
On the surface this sounds like a pretty good deal, but some Senate GOP leaders are resisting raising the debt ceiling, while promising to cut spending. Cutting social programs is another rub.
Spending originates in the House of Representatives. The president presents a budget to the House for consideration, which entails debate in numerous committees. In this Republican controlled House, the president was able to garner a one vote majority to advance his promised agenda. Enter the Resistance.
Democrat opposition in the Senate, along with a few Republicans could prevent the Trump agenda from advancing. For the opposition, what could be sweeter?
The Biden administration borrowed $7 trillion and ran up the national debt to $37 trillion, leaving Trump with a $3 billion-per-day interest payment. President Trump wants to stimulate economic expansion to increase government revenue, by giving tax incentives, while reducing social programs.
Confused yet? Federal Reserve Chairman, Jerome Powell has refused to lower interest rates, despite growing employment reports, lower inflation, lower energy costs and increasing corporate profits, which mean savings, increased job growth and increased tax revenue. A lower mortgage rate would stimulate home sales and business expansion. Powell and the president don’t get along. Does Powell want to see the Trump agenda fail?
The Department of Government efficiency has found billions in waste and misuse in government spending. Some of it in social programs, even where illegal aliens are riding the Medicaid horse.
Congress is not advocating massive cuts in Medicare or eliminating the SNAP program. They are attempting to reign in wasteful spending and fraud. Governor Lujan Grisham claims the cuts will cause the death of many, in New Mexico, while ignoring the need for spending reform, mounting debt and isolated inefficiency that hinder responsible government assistance. Instead, our governor disgorges verbal hatred toward President Trump, as an alternative of offering solutions of her own. Could she also be among those who want to see the Trump agenda fail?
Budget sobriety depends on Congress and it has been numerous Congresses which have created this debt mess, though-be-it, at the suggestion of presidents. It is time for responsible politicians to retire their partisan opinions and find solutions for the people of this country and not simply resisting, just to see the president’s agenda fail.
Such is childless and irresponsible behavior and offers no solutions to debt resolution. A bi-partisan super majority may be impossible for this reconciliation bill, but I do hope the Senate refuses to raise the debt ceiling. A higher ceiling is a temptation to spend.
Tom Wright is an El Rito Media investor.