Here again. This week, the Senate presented, refined and accepted its version of “The Law on a Big Beautiful Bill” and this is a fiscal monstrosity. What was already an out -of -a -house porridge in the house was overworked in an ode to $ 4 trillion for frivolity.
This is not a tax reform. This is a bilateral pink filled with pork, tricks and – of course. They tell us to cheer because the bill is constantly making several growth policies, including a 100 percent bonus depreciation and the cost of research and development. However, several pearls in a huge ocean of bad policies have nothing to celebrate. It’s like being amazed at the newly created rooms in a burning house.
They told us to cheer because the bill removed or discharged $ 147 billion from the smallest materials of the house version. But as Arnold Ventures analysis points out, the Senate also added $ 186 billion to the pot. This is a network increase of $ 39 billion in pork.
This is what Washington calls a compromise: the chamber offers $ 1, the Senate offers $ 2, and somehow we end up spending $ 3. Congress manages both to break the bank and to violate their own budget rules.
With $ 3.2 trillion direct expenses and $ 700 billion interest payments, the budget proposal will lead to total new loans to $ 3.9 trillion, according to a past analysis of the Congress Budget Office. Former President Joe Biden took four years to add $ 4.7 trillion to the deficit.
Do not neglect the cynicism baked in this bill. It increases the deduction of the capacity of the state and the local tax (salt) (long known as the grace of the rich) to $ 40,000 (with “termination” in 2029, which no one believes will happen). There are hundreds of billions of “temporary” provisions that everyone knows will be expanded. There is such a great impact on the deficit that even the most pink dynamic results cannot make the numbers be added.
This bill also grossly violates the house’s own instructions for budget coordination, which recommend $ 2 trillion to compensate for costs. The version of the house fell a little short, pairing $ 3.8 trillion tax reliefs with $ 1.6 trillion cuts. Senate version? Nearly $ 4.5 trillion dollars reduce taxes and only $ 1.4 trillion dollars costs – $ 600 billion violated by a deal legislators that were alleged to have agreed.
Once Republicans have been seriously talking about aligning taxes and costs. They took care of the economic distortion, the simplicity and expansion of the tax base. Now too much just want the sugar tide of tax reduction without fiscal discipline. Meanwhile, Democrats want to greatly expand the state and pretend that only billionaires can take the bill. Both sides are wrong. Mathematics does not work, and the moral of reckless expenses is worse.