I cheered and celebrated after the passage of the tax cuts by Congress and Donald Trump later signing. I felt this was a historical moment for the average middle income american who saw their wages go up because of the slash on the rate paid by the corporations.
But looking deeper into it after reading this post, I see America is heading for a looming disaster of deficits and debt. The bill signed by Trump is only boosting the US economy in the short term as it is boosting the growth of the total size of the US GDP by 0.8%.
But in the long run, we see huge spending which is causing deficits as I see it, with deficits reaching $1trillion in the current or next fiscal year double what the congressional budget office had projected less than a year ago for 2018. The US debt being projected to rise from $20.5 trillion today to an unprecedented $29.9 trillion in 2028.. over 100% of projected GDP well into the danger zone. This debt is going to kill the american economy. These debts have been historically low for years but are now going up and may continue to rise for some time.
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