Tax and Budget Policy

An acute American fiscal crisis would be a catastrophe not just for the US and its economy but also for the world. And the most innocent victims will be the future generations, who will be denied the prosperity and economic opportunities we have enjoyed.

It’s no surprise that in this election cycle characterized by candidates giving away taxpayer-funded goodies left and right, changes to these complex Social Security provisions have gained traction. They affect voters who are represented by well-funded special interest groups, particularly public sector employee unions for teachers, police officers, and firefighters.

Offering subsidies is how many states show interest in bringing in a new business enterprise and states regularly try to offer more than other states can, but it doesn’t have to be that way. Marc Joffe explains how states can get out of the trap of playing the subsidies game against their neighbors.

The major tax breaks proposed by Trump and Harris, taken together, would cost trillions of dollars. Add that to the $4 trillion price tag of the 2017 Tax Cuts and Jobs Act extension, and it’s clear that without serious spending cuts, this year’s campaign promises will make the 2025 tax cliff all that much more challenging.