United States Will Hit Debt Limit Sooner Than Expected Because of Tax Cuts
Source: NY Times
The Congressional Budget Office said on Wednesday that the United States is expected to bump up against its borrowing limit a month earlier than previously expected, a function of last year’s $1.5 trillion tax cut, which is resulting in less revenue for the Treasury Department.
According to the budget office, the borrowing limit will most likely need to be raised in early March after the “extraordinary measures” to extend borrowing employed the Treasury secretary, Steven Mnuchin, are exhausted. The budget office previously projected that the debt limit would need to be raised beyond its current level of $20.5 trillion in late March or early April.
The reason for the change stems from the tax cuts, which went into effect in January and are expected to translate into less revenue for the federal government.
The Internal Revenue Service released new withholding tables this month to reflect the new, lower tax rates, which will result in companies withholding less money from worker paychecks. Beginning in February, the government is expected to see $10 billion to $15 billion less tax revenue each month.
Read more: https://www.nytimes.com/2018/01/31/us/politics/united-states-debt-limit.html
Another perfect shitstorm looming on the horizon.
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they will make extraordinary cuts to benefits and social programs in the midst of a very strong economy, roaring stock market, and record corporate profits.
A few will benefit while many will suffer. We may see a servant class emerge to serve the wealth investor class.
"Right, as the world goes, is only in question between equals in power, while the strong do what they can and the weak suffer what they must." -Thucydides
It's the GOP way/plan.
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