A New Approach to Taxes That Pays Its Own Way

null By Brian Deese and David KaminNov. 19, 2023 4:38 pm ETJournal Editorial Report: Speaker Mike Johnson faces familiar antagonists. Images: Reuters/Zuma Press Composite: Mark KellyMost of the tax cuts passed in 2017 are set to expire in 2025. Altogether, these cuts cost the federal government about $350 billion a year, or 1% of gross domestic product. Their expiration marks a milestone in American tax policy. The tax system of the 1990s could have financed the government we have today. But two decades of successive unpaid-for tax cuts eroded our nation’s revenue base. Without those tax cuts, federal debt as a share of the economy wouldn’t be projected to rise significantly over the coming decade. Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8Continue reading your article witha WSJ subscriptionSubscribe NowAlready a subscriber? Sign InSponsored OffersTurboTax: Save up to $15 with TurboTax coupon 2023The Motley Fool: Epic Bundle - 3x E

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Opinion Nov 20, 2023 Add to Reading List

A New Approach to Taxes That Pays Its Own Way

null

Brian Deese

and

David Kamin

Nov. 19, 2023 4:38 pm ET

Journal Editorial Report: Speaker Mike Johnson faces familiar antagonists. Images: Reuters/Zuma Press Composite: Mark Kelly

Most of the tax cuts passed in 2017 are set to expire in 2025. Altogether, these cuts cost the federal government about $350 billion a year, or 1% of gross domestic product. Their expiration marks a milestone in American tax policy.

The tax system of the 1990s could have financed the government we have today. But two decades of successive unpaid-for tax cuts eroded our nation’s revenue base. Without those tax cuts, federal debt as a share of the economy wouldn’t be projected to rise significantly over the coming decade.