In the Can’t Make This Stuff Up Department: U.S. Will Need to Borrow Almost $1 Trillion from China and Others This Year to Pay for Tax Cuts

Update Nov. 3: Way back in February we warned that the Trump administration will sell $1.34 trillion in new U.S. debt this year, the Treasury Department estimates. That’s a 146% jump over last year and the most new debt issued since the aftermath of the Bush-era Great Recession.

Original Post: The plan seemed simple enough: first, ram through a redistribution of wealth scheme in favor of corporations and the richest Americans that would add more than $1 trillion to the federal deficit; secondly, come up with the excuse that social security, Medicare, Medicaid, and healthcare have to be cut to pay for the GOP tax cuts.

The sham embraced by GOP Speaker Paul Ryan of Wisconsin (so out-of-touch that he celebrated $1.50 a week pay raise for a school secretary, before trying to hide the fact that he did) was a page right out of the playbook of his patrons, the Koch brothers and others. Sensing a backlash from working- and middle-class voters in Rural States that depend on those programs, however, Senate GOP leader Mitch McConnell of Kentucky said forget that; it’s a bad idea in an election year where Republicans are running for the door rather than facing the wrath of voters in November.

As McConnell knows very well from voters in his home state, most Americans everywhere, including working- and middle-class Rural Americans, want entitlements expanded, not cut. So instead of losing even more support from Americans, McConnell told Republicans lets do infrastructure repairs this year. Now as we recently reported that plan, primarily financed by forcing state and local governments to raise taxes and selling public roads, bridges and waterways to private companies that would charge tolls for their use, appears to be on life support, if not already declared dead on arrival.

Now Republicans are stuck with a very weak election-year agenda. Adding to Republican turmoil, it has become quite transparent to everyone that their coveted tax cuts grossly favor the rich and corporations over Main Street America. It’s at the point that those same Koch brothers have to spend $20 million on a campaign this year to try to make the tax giveaways look better than they really are.

To make matters even worse, Wall Street’s celebration of the tax cuts seems to be over, with investors not showing a lot of faith in the current economic climate at the moment. Trump can now boast of presiding over the worst closing point decline on record for the Dow.

It means we’re still stuck with the bill, but no worries, future generations will pick up the tab, right? Nope, according to the Treasury Department and the Congressional Budget Office, China and other debt investors will have pay the bill this year in order to keep the U.S. from defaulting on its loans.

Thanks to the GOP tax giveaways, the federal government is getting ready to borrow almost $1 trillion in 2018, an increase of 84% from last year. So in the end, yes, the Republicans are kicking a massive debt down the road. Is that how we make America great again? Or is that really just more of the same from a party that can’t seem to help but break the bank every time it occupies the White House?

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