GOP pushes controversial plan to extend Trump's 2017 tax cuts without counting $4T+ cost to deficit

 🧵 BREAKING: GOP pushes controversial plan to extend Trump's 2017 tax cuts without counting $4T+ cost to deficit

1/ Republican leaders argue extending existing tax cuts wouldn't create "real" deficit increase. Current revenue at 17.3% of GDP would stay stable, they claim.

2/ Independent analysts project $4-4.8T added to debt over next decade. Two major credit agencies have already downgraded US debt rating.

3/ GOP needs special procedures to bypass Senate Dems. House Speaker Johnson backs "current policy baseline" approach, but faces pushback from party's deficit hawks.

4/ Republicans say costs would be offset by:

• $2T in spending cuts
• Eliminating green energy incentives
• Economic growth
• Increased fossil fuel production

5/ Context: Similar growth promises in 2017 didn't prevent those tax cuts from adding $2.5T to national debt. Current deficit already at $1.8T.

6/ Congressional deadlines loom:

• Gov't funding: March 14
• Debt ceiling: Summer
• Tax cuts expire: End of 2024

🔑 Key question: Will markets accept this new approach to deficit accounting?

#TaxCuts #Congress #Economy