Coming into office next year, Donald Trump will face massive budget deficits of $2 trillion a year and rising. Trump and every member of Congress now know that excessive deficits and spending can spike inflation, which is very unpopular with voters. The president and his budget team must find spending cuts to tackle the deficit monster.
Downsizing Blog
Governor Tim Walz’s Fiscal Record
Kamala Harris selected Tim Walz as her presidential running mate. Let’s look at his record on spending and taxes as Minnesota governor since 2019.
US Workers Earning $60,070 Face $3,063 in Higher Taxes to Keep Social Security Solvent
Despite their significant policy differences, when it comes to Social Security both leading presidential candidates see eye to eye. Trump and Biden have both vowed not to cut Social Security. While these pledges may resonate with politically powerful voters, a “do-nothing” approach to Social Security that avoids necessary structural reforms and instead promises to preserve benefits at current levels, comes at a high cost for younger generations.
Another CBO Report Warns of Debt Surging, As a Fiscal Crisis Brews
As debt grows and interest costs rise, irresponsible spending by Congress and the White House is taking a larger toll on American workers, reducing economic opportunity and their take-home incomes significantly. It also puts our nation at greater risk of a sudden fiscal crisis.
New Emergency Spending Would Cost $28-$41 Billion More Than Incomplete Budget Score Suggests
Legislators and the public tend to underestimate the fiscal costs of emergency spending. Emergency supplemental bills, such as the Ukraine‐Israel foreign aid package, are often billed as one‐time, temporary costs. This framing obscures the tens of billions of dollars in interest costs generated by new deficit spending.
Responding to Critiques of the Congressional Fiscal Commission
Since the House Budget Committee passed the Fiscal Commission Act out of committee in January, several critics have come out of the woodwork to argue against the bill. Criticism ranges from calling the commission process undemocratic, to claiming that Social Security and Medicare (or at least Part A) don’t contribute to the debt, to worrying about tax increases that might get passed under false pretenses, to calling the commission a death panel.
Below I list prominent critiques and their main charges, and defuse each argument in turn:
The CBO Budget and Economic Outlook: Debt Projected to Grow to Record Highs
The Congressional Budget Office (CBO) released its annual Budget and Economic Outlook, providing 11‐year fiscal projections for 2024 to 2034.
Six Reforms to Enhance Transparency and Fiscal Accountability Through the Congressional Budget Office
The Congressional Budget Office (CBO) plays a critical role in informing Congress. We can think of at least six reforms that would enhance the CBO’s role in ensuring transparency and accountability in federal budgeting.
Curbing Federal Emergency Spending: New Study Release
The key takeaway: Congress is increasingly abusing emergency designations to evade spending limits. With Congress still considering $110 billion in emergency funding for Ukraine and Israel, it is high time we recognize the fiscal and national security consequences of unpaid‐for emergency spending.
The Solution to Soaring Debt
Cutting federal aid to the states would reduce our national debt while improving governance.