EXPANSIONARY EMPTINESS

The tax and spending bill recently passed by the House will, according to the CBO, increase the national debt by $3.3 trillion through 2034. However, the bill isn’t fiscally expansionary. This is because the sum of the tax cut extensions, which have been in place since 1/1/18, cost $5 trillion. The newly proposed raft of tax and spending cuts collectively save $1.7 trillion, reducing the Treasury loss to $3.3 trillion.