That indebtedness to the USA Treasury will trigger a "PAYGO" law. The PAYGO law automatically removes large amounts of money from public program funding, including Medicare.
"W" tried the same thing after he was re-elected in 2004 when he asked for $2 Trillion from SSI.
PAYGO, (click here) which stands for “pay-as-you-go,” is a budget rule requiring that (using current law as the baseline) tax cuts as well as increases in entitlement and other mandatory spending must be covered by tax increases or cuts in mandatory spending. It does not apply to discretionary spending (spending that is controlled through the appropriations process)....
The talking points are nonsensical. The entire package cuts all sorts of taxes and is stated to give monies to the middle class and families. What the talking points of the plan doesn't say is the costs to the country when all is said and done. The Republican Tax Plan is a "Give Away Program" that is a 'feel good feeling' until the reality of the National Debt achieves 100 percent of GDP.
Basically, it is a political trick.
If this was a real tax plan there would be public hearings over the span of time of years to compile the ideas and directions Americans would like their tax structure to take. This is horse hockey full of giveaways that our children and grandchildren will be paying for for decades.
The White House (click here) released principles and a framework for tax reform today. We applaud the President's focus on tax reform, but the plan includes far more detail on how the Administration would cut taxes than on how they would pay for those cuts. Based on what we know so far, the plan could cost $3 to $7 trillion over a decade– our base-case estimate is $5.5 trillion in revenue loss over a decade. Without adequate offsets, tax reform could drive up the federal debt, harming economic growth instead of boosting it.
The framework proposes a number of specific changes including: consolidating and reducing individual income tax rates to 10, 25, and 35 percent; doubling the standard deduction; cutting the business tax rate to 15 percent on both corporations and pass-through businesses; repealing the Alternative Minimum Tax (AMT) and estate tax; repealing the 3.8 percent investment surtax from the Affordable Care Act ("Obamacare"); moving to a territorial tax system; and imposing a one-time tax on money held overseas.
The plan also includes some vaguer proposals, including "providing tax relief for families with child and dependent care expenses" and eliminating "targeted tax breaks that mainly benefit the wealthiest taxpayers." Although the framework itself is vague on the latter, at their press conference Secretary of the Treasury Steven Mnuchin and National Economic Director Gary Cohn seemed to imply it meant repealing all individual deductions unrelated to savings, charitable giving, or mortgage interest (revenue would come mostly from repealing the state and local tax deduction)....
What is the hurry?
Even with the detailed portions of the plan, there are not enough parameters specified to provide a certain revenue estimate of the tax plan.
