Peterson Foundation Statement on New Round of Tax Cuts
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
Social Security Inaction Raises Risk of Higher Interest Rates and Inflation
Adding to the national debt by borrowing instead of enacting Social Security reform can harm the economy in two key ways.
What Is Fiscal Dominance?
Fiscal dominance occurs when the national debt — and especially high interest costs — forces the hand of monetary policymakers.
Can We Grow Our Way Out of the National Debt?
The gap between what economic growth can realistically deliver and what fiscal sustainability requires is too large to bridge without also addressing the structural imbalance between federal spending and revenues.