This is David Davenport of the Hoover Institution for Townhall.com.
One more dilemma for our leaders in Washington is that we desperately need tax reform, but we can’t afford to increase the national debt.
The debt is already large and growing. Our leaders say it’s nearly $15 trillion, but that doesn’t count another $5 trillion of debt to our own government, making the real number closer to $20 trillion. And Senator Ben Sasse has recently reminded us that even that number doesn’t count entitlement bills coming due that we can’t pay, perhaps pushing the number as high as $75 trillion.
But there are reasons to worry that it’s about to get worse. First, rising interest rates could make the debt more expensive. Second, Trump’s tax reform could bring in even less revenue. He’s counting on stimulating growth, but it will take a lot of growth to pay for lower tax rates.
Senator Mitch McConnell is right to say that tax reform must be revenue neutral to keep from growing the national debt.[soundcloud url=”https://api.soundcloud.com/tracks/324130419″ params=”color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false” width=”100%” height=”166″ iframe=”true” /]