Democrats Complain About $1.5 Trillion Estimated Cost of Tax Bill But President Trump Already Nearly Pays It Off
Guest post by Joe Hoft
The major complaint that the Democrats have with the tax bill is that it is projected to increase the US debt by $1.5 trillion. However, when compared to Obama President Trump already nearly has it covered.
Democrats don’t care about the amount of US debt. They never have. They are only saying this now about the President’s tax plan because it is politically advantageous to do so. They really don’t care and there is empirical evidence to support this.
Under President Obama the US Debt nearly doubled in size from $10.6 trillion to nearly $20 trillion over eight years. But as the debt mushroomed by nearly $10 trillion we never heard a word from Democrats about the massive debt increase and the resulting burden on Americans. Now as President Trump and Congress move forward with the tax cut bill, giving Americans back more of their hard earned money, the Democrats are screaming.
The Democrats have it all wrong. The US taxpayer’s money is not the government’s money, it is hard working Americans’ money. The tax cuts allow Americans to keep more of their own money.
The projections of the President’s tax cuts costing $1.5 trillion are certainly questionable. But even if they are accurate, when compared to Obama, President Trump can argue that he has already nearly paid for the projected $1.5 trillion debt increase.
On President Trump’s inauguration day the debt was at $19.9 trillion and currently, on December 19th, 2017 the debt stood at $20.5 trillion. The US Debt has risen by $545 billion since President Trump’s inauguration on January 20, 2017.
President Obama during the same time period in his first term also increased the US Debt. However, where President Trump increased the Debt to date by 2.7% , Obama increased the debt by 13.8% or 10% more than President Trump. President Obama inherited a US Debt amount of $10.6 trillion on his inauguration and increased it by nearly $1.5 trillion during his first eleven months in office.
Obama increased the US Debt amount by nearly $1 trillion more than President Trump in the first eleven months of his Presidency.
President Trump also has headwinds that President Obama did not have – interest on the $10 trillion in increased debt incurred by Obama and increased interest rates from the FED that Obama did not have.
The FED kept interest rates at near zero percent for most of Obama’s eight year term. Since President Trump was elected the FED have increased rates four times by a total of 1%. Increases in the Fed Funds Rate increase the cost of borrowing and the largest borrower in the world is the US government. With $20 trillion in debt, a 1% increase in interest payments equals $200 billion in annual interest payment increases.
In spite of the increased rates and Obama debt, President Trump’s debt increase is nearly $1 trillion less than Obama at the same time in Obama’s first term. President Trump has already nearly paid for the tax cut debt increase that Democrats are protesting.