Here we go again. This week, the Senate unveiled, honored and retained its One Big Beautiful Bill Act, which is a fiscal monster. What was already too big in the house was changed to a 4 trillion dollars worth of skin that is undesirable.
This is not a tax reform. It is a bilateral piñata stuffed with pork, tricks and, of course, in the section. We are told to be delighted because the bill is becoming a constant several growth policy, including 100 percent prize depreciation and research and development. But a few pearls in the huge ocean of bad politics is nothing to celebrate. It’s like a surprise in the newly painted room burning house.
We were told to cheer because the account removes $ 147 billion in the House version of the worst handwriting material. However, as the Arnold Ventures analysis points out, the Senate also added $ 186 billion to a pot. This is a network increase 39 billion dollars pork.
This is what Washington calls a compromise: the palace offers $ 1, the Senate offers $ 2, and somehow we spend $ 3. Congress manages both the bank and violates its budget rules.
Based on the previous analysis of the Congress Budget Office, with $ 3.2 trillion direct costs and $ 700 billion interest payments, the budget offer would increase new borrowing to $ 3.9 trillion. Former President Joe Biden took four years to add $ 4.7 trillion to the deficit.
Don’t forget the cynicism baked by this bill. This increases the deduction of state and local tax (salt) (long -known as the Bliss of the rich) to $ 40,000 (2029 ‘past’ that no one believes). There are hundreds of billions in the “temporary” provisions that everyone knows. There is such a high effect of deficit that even pink dynamic scores cannot force the number to put together.
This draft law also obviously violates the palace’s own instructions on budget reconciling, which recommend spending $ 2 trillion. The home version fell a little briefly and was $ 3.8 trillion tax relief with $ 1.6 trillion. Senate version? Almost $ 4.5 trillion tax reduction and only $ 1.4 trillion cost reduction – a violation of $ 600 billion -worth of laws by laws alleged.
Once upon a time, Republicans were seriously talking about taxing and spending. They were concerned with economic distortion, simplicity and expansion of the tax base. Now too much just wants to make tax reduction sugar reduction without fiscal discipline. Meanwhile, Democrats want to significantly expand the state and pretend that billionaires alone can pay the bill. Both sides are incorrect. Mathematics does not work, and the moral of reckless costs is worse.