On Oct. 25, the Treasury Department announced the federal budget deficit ballooned to nearly $1 trillion in fiscal 2019, representing a 26% increase in the deficit in just one year. This growth in the deficit occurred despite what was a sustained run of economic growth, with full employment.
A few days later, the government announced U.S. economic growth slowed to 1.9% in the third quarter, an actual step down from the second quarter lackluster results of 2%.
President Trump’s signature legislative achievement, the 2017 Tax Cuts and Job Act, promised tax cuts targeting corporations and wealthy individuals would result in extraordinary growth in the GDP, anywhere from 4 to 5 to even 6 percent annually, offsetting lost tax revenue, paying for itself and eliminating the deficit.
U.S. Rep. Rodney Davis, R-Taylorville, promoted and voted for the 2017 Tax Cuts and Job Act, buying into the notion that reducing taxes for corporations and wealthy individuals would somehow super-charge our economy, drive the GDP up 6% and wipe out the deficit.
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Instead, the deficit has exploded and the economy now shows signs of stalling.
Congressman Davis chose to side with economic policies that have largely benefited corporations and wealthy individuals, leaving the rest of us with uncertainty and debt. We simply can’t afford Congressman Davis.
Pat Peterson, Bloomington