Peterson Foundation Statement on New Round of Tax Cuts

NEW YORK — Michael A. Peterson, Chairman and CEO of the Peter G. Peterson Foundation, commented today on new deficit-financed tax legislation introduced in the House of Representatives:
“Another round of tax cuts financed with borrowed money is doubling down on fiscal irresponsibility. Instead of digging the hole deeper and passing even more debt to our children, lawmakers should implement reforms that actually improve our unsustainable fiscal outlook.
“The reason that these provisions were not permanent in the first place was that we could not afford it. What has changed? Our deficits have only gotten worse. The administration recently acknowledged that we have returned to trillion-dollar annual deficits, and we’ll remain above that level as far as the eye can see.
“Tax cuts simply don’t pay for themselves. America’s future economy depends on a strong fiscal foundation, and more debt is the last thing we need.”
Further Reading
What Is Stepped-Up Basis on Capital Gains and How Does It Affect the Federal Budget?
The step-up in basis is a provision in tax law that relates to how assets — such as stocks, bonds, or real estate — are valued and taxed after their owner passes away.
The Demographics of Income and Wealth in the United States
Income levels for Americans vary across geography, race, and gender.
What Is R Versus G and Why Does It Matter for the National Debt?
The combination of higher debt levels and elevated interest rates have increased the cost of federal borrowing, prompting economists to consider the sustainability of our fiscal trajectory.