The New Republican Budget Plan Is Unserious
Serious problems should be met with serious solutions. We have serious problems, namely a fast-growing debt and a need to extend some tax cuts in an unforgiving environment where interest rates are high and inflation is rising again. Unfortunately, despite a new mandate, House Republicans have yet to rise to the occasion. Their latest budget blueprint shows that fiscal responsibility vanishes the moment real choices arise.
As a reminder, government debt stands at 100 percent of gross domestic product (GDP). It will grow to 117 percent by 2034 if the tax cuts are allowed to expire as scheduled this year. It was 76.5 percent when the cuts were first passed in 2017.
For those wondering why deficits and debt have accumulated so much, here are some more numbers. According to Center for a Free Economy President Ryan Ellis, since 2017, tax revenues have grown by 58 percent, while spending has grown by 75 percent. These hikes weren’t driven by inflation alone, which increased by 31 percent cumulatively over the period. As Ellis rightly notes, we can’t blame taxpayers. The fault lies squarely with politicians’ spending incontinence.
Enter the House Republican budget blueprint for a “big beautiful bill” as requested by the president. As the Committee for a Responsible Budget explains, “the budget resolution’s instructions include a net $3.3 trillion in allowable deficit increases—or
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