AOC Tries To Blame Trump Tax Cuts, Not Runaway Spending, For Massive Deficits

Rep. Alexandria Ocasio-Cortez (D-NY), claimed that the tax Cuts made under the former President Donald Trump Have been the “largest contributor” The spending agenda adopted by President Trump was more responsible for the federal budget deficits of the past few years than the ones that have been incurred in the federal budget. Joe Biden.

Janet Yellen, Treasury Secretary, recently informed Kevin McCarthy (R. CA House Speaker) and other lawmakers letter The debt ceiling is an arbitrary limit on the amount of the national debt Congress set a limit that exceeded $31.4 trillion. This led to a debate over the future federal deficit spending. Ocasio-Cortez was pressed A journalist interviewed her Thursday to find out if she believes that her party is responsible for the recent record deficits.

“Democrats have been in charge for the past two years; do you think Democrats have spent too much money?” The reporter was curious. “I think the largest contributor to the debt ceiling, to our deficit, has been the Trump tax cuts,” The lawmaker replied.

According to an analysis, the Tax Cuts and Jobs Act is the most important legislative achievement of Trump’s administration. It is expected to reduce federal revenues by $1.9 trillion between 2018 and 2028. analysis From the Congressional Budget Office. According to an analysis, the Biden-approved spending packages will add more than $4.8 trillion to new deficit spending between 2021-2031. analysis From the Committee for a Responsible Federal Budget. This figure exceeds the $1.9 trillion that was added by the Tax Cuts and Jobs Act. Eliminating the American Rescue Plan’s impact would result in $2.5 trillion in new deficits.

Trump presided over federal deficits that ranged between $665 billion to $984 billion before the lockdown-induced recession. The deficit grew to $3.1 trillion in fiscal 2020 due to stimulus measures like the CARES Act. data From the Office of Management and Budget. Biden was responsible for a deficit of $2.8 trillion in fiscal 2021. This is largely due to his American Rescue Plan. Although the commander in chief has repeatedly asserted He has reduced the budget deficit by a significant amount. The deficit of $1.4 trillion for fiscal year 2022 is significantly higher than the deficits before the recession.

Ocasio-Cortez is known for proposing ambitious legislation which would require substantial federal expenditures. Her Green New Deal’s first iteration would have been a success. cost Over the course of a decade, between $51 trillion to $93 trillion.

More generally, however, both Republican lawmakers and Democratic administrations have created unsustainable budget surpluses that have inflated the national deficit to more than $31.5 trillion. Republican lawmakers are the ones who have broken the debt ceiling most recently. struck a deal with McCarthy under which the party’s new majority vowed to introduce a budget that refrains from increasing the statutory debt limit.

The most recent analysis from economists at the University of Pennsylvania’s Wharton School revealed that a 30% decrease in spending or a 40% increase in taxation would be necessary to handle current deficit spending and future obligations. Similar results study According to the Committee for a Responsible Federal Budget, policymakers must enact 26% acrossthe-board spending cuts to balance our budget in the next ten years. In order to balance our budget while exempting programs like Medicare, defense, veteran benefits and Social Security from cuts, all other federal spending should be reduced by 85%.