Therefore, a feasible solution may be to include an additional upper-income bracket to throw a bone to the Democrats and bring some on board to get to 60 votes.
But the problem is that under either Reconciliation or Regular Order, passing tax cuts would mean that deficits would soar. But here is the rub, in the 1980's the National debt was 45% of GDP; but now it is 106% of GDP.
read more The federal budget deficit widened in the fiscal year 2017 to the sixth highest on record, creating a budget shortfall of 6 billion.
The overspend resulted primarily from an increase in spending for Social Security, Medicare, and Medicaid, as well as higher interest payments on the debt due to rising rates that drove up outlays to trillion, which was 3% higher than the previous fiscal year.
Revelation Numbers The federal budget deficit widened in the fiscal year 2017 to the sixth highest on record, creating a budget shortfall of 6 billion.
The 12-month trailing PE for Pro-forma earnings, which takes into account non-recurring items that seem to recur ever quarter, is trading at 20 times earnings.
Those asset sales will cause massive ETF redemptions on the part of the investing public, which will send individual stock prices plummeting and push ETF prices into a death spiral.
Therefore, we should all be fully aware where all the inflation created by central banks ended up.
Cutting taxes in an environment of massive debt and ballooning deficits, without a commensurate reduction in spending, is not going to grow the economy over 3%--at least it hasn't worked in the past 800 years.
Declining government revenues and long-term costs associated with an aging population, including higher Social Security and Medicare spending, are expected to continue pushing up deficits over the coming decades.
The S&P hit a bottom of 666 in March of 2009, which led to the most humongous intrusion into free markets by the U. Michael Pento produces the weekly podcast "The Mid-week Reality Check", is the President and Founder of Pento Portfolio Strategies and Author of the book "The Coming Bond Market Collapse".