Well I know it sure didn't help our deficit highest its ever been and only solution is higher taxes or at least stable and less spending.

We had higher deficits in 2009-10-11 and 12.

The deficit prediction for the new tax code is now estimated to be over 2 trillion instead of 1.5 to 1.7 trillion. The corporation cuts are big and fast. The cuts for higher incomes is as well. The middle class cuts are all over the place and yet to be determined and are the taxes needed to keep the losses or costs even at 2 trillion.
Lot of different discussions right now on the good bad and ugly of our national debt. Running large deficits such as the 1 trillion per year the next two years is a way the government can subsidize the economy. In other words it can function as a stimulus package if you will. Which is one reason why the administration and the GOP will not want to change course as this means the economy will stay pretty strong and job creation will continue. Most people live for today and they won't worry much about 24 trillion of debt if they are working. It is a risk as Trump ran on stating he could easily lower the national debt and conservative GOP candidates don't like big debts. We will have to wait and see which policy will carry the most weight, if economics becomes a cornerstone for the 2020 elections.

Bryce

This was my 1st year fully self employed.

So I really have nothing to compare to now. Won't know if I'm paying more or less.

Should know something next week on final nu!here. All new to me all the way around. Self employment taxes and such.

Go Trump !!!!!

There are several factors involved in the increasing national debt:

Modernizing and rebuilding the gutted military. Is it necessary?

Continuing to be the world's policeman. Makes no sense to me.

The corporate tax cuts to bring factories back to the U.S. thereby increasing the tax base. Takes time. Will it work?

Pork barrel spending resulting from lack of a line item veto. Silly that unrelated spending can be latched to necessary legislation. Not likely to change.

People in congress that take no responsibility for the cost of measures they push.

etc. etc.

Take a closer look at what was deducted according to your W-2 this year compared to 2016. I will bet 2018 was less as long as your 2018 income did not go up enough to put you into a higher bracket.
The IRS lowered the tax rate percentage AND the amount deducted from each pay check. It seems that they lowered the deductions too much, which lessens the amount of the refund check, or in my case, raised what I owed the IRS. The plus side is that the IRS had less of our money, interest free, during the entire year, which is good for everyone.

Bryce paying interest on that National debt is why taxes can't be cut. Well, unless you borrow to pay interest. Could you imagine personally borrowing money to pay the interest on borrowed money? Seems like a train headed for a wreck.

Yes I know that but there are economists who are actually stating that fueling the economy by deficits is not nearly as bad for our financial security as many choose to believe. I personally don't agree strongly with that mindset but I can see the rationale. If you take in less money then you spend the private economy should benefit from those expenditures.
Somewhat like the international trade deficit that many dislike. When we can buy the goods at such a great savings then our economy may benefit and actually consumers, lower income and middle income especially. An issue we need to face is if we have huge federal deficits, state deficits and large trade deficits we may create some severe financial insecurity. Getting a lot of persons back to work will fund the SS fund which means we can borrow money and not be considered debt.
With 22 trillion I can really now see the reason why there is a huge reluctance by the federal government to raise interest rates. A couple percentage points could just about double that portion of the federal budget. As citizens we learn how to deal with high interest rates. The government chooses to avoid those issues.
I am actually at 71 borrowing money more freely than I ever did as I can remember when I was 4 years on the job, family, two children and a house mortgage that went from 8. to 10 to 13 in 4 years.
Bryce

I understand Keynesian economics say deficit spend in a recession. I guess voodoo economics says deficit spend all the time.

And it's really a vicious cycle. The more the government borrows, the more it is in competition with private enterprise for new capital...thus putting upward pressure on interest rates for everyone. Also, the more we borrow, the more risky that debt is viewed...causing creditors to demand higher and higher interest rates to compensate for the additional perceived risk.

Look up Moned Monetary Theory, it will scare the crap out of you.

Deficits will only go higher, we have a debt currency and the only way it lives is through more debt.

Since I am retired and on a fixed income with my work retirement money and social security, I made about the same amount the past two years but am receiving $900 more this year in federal income tax returns. It must have to do with the Trump thing. I’ll take the crumbs.

Modern Monetary Theory? Why do all the Voodoo economic Theories not really work out like the predictions of the Theories? I think they can't get around two laws.

1.Murphy's
2.The law of Unintended Consequences.

Well if Trumps business had the debt this country has he would have gone under a long time ago and that is for any business. The way I see it is we are getting farther behind every year and it won't be to long until there is no getting out of the whole and we will be sucking up to China or Russia to stay alive its all ready happening with China.

New tax code saved me about $2800 this year, and with very minimal changes in behavior.

Trump businesses have filed for bankruptcy several times which means he has used the government and the law to save his businesses, as well as family. I am getting the feeling he is running the country like he did his businesses and that is not good for the public or the private sector in my opinion. He is a good example of a business person who routinely spent more money than he made, so deficit spending is not new to him.

Bryce

China is in much worse shape than we are. They have an immense debt crisis staring them down. Russia's economy is smaller than several of our individual states.


Bur I agree with you that we are looking into an abyss if we don't get control of spending

Trump could have followed suit and just said "Hey, I inherited this mess left by the previous President"

Trump had a meeting with of the heads of all agencies and urged them to find 5% or more to cut from their budgets voluntarily. It is too bad that Big Government doesn't work that way.
I could find 25% that could be cut without losing one federal worker or affecting their missions. All you have to do is ask the federal employees lowest on the totem pole. They know better than anyone where the waste is.