Last Updated on 2 weeks by marslinknews@gmail.com
Senate Democrats are pushing back against a Republican plan to extend Trump-era tax cuts using an accounting tactic that could make the costs appear nonexistent. In a letter to Senate Majority Leader John Thune, Minority Leader Chuck Schumer and other top Democrats, including Ron Wyden and Jeff Merkley, called the move “budget fraud.”
They argue the GOP is trying to make tax cuts seem free when they would actually add $37 trillion to the deficit over 30 years. The accounting method, known as a “current policy baseline,” would make the extension of $4.6 trillion in tax cuts look cost-neutral—a move Democrats say could permanently undermine fiscal discipline.
The debate comes as Republicans push to extend tax cuts without increasing the deficit on paper. Critics from both parties warn that if this method is approved, it could eliminate any need for future tax cuts or spending increases to be offset, leading to ballooning national debt.
GOP lawmakers are awaiting a decision from the Senate parliamentarian, which could come as soon as this week, on whether they can move forward with their plan under budget rules.
MarsLink News: Source: Politico