No, it is not prudent to cut taxes or extend tax cuts under the TCJA.
Reducing the Revenue Loss of TCJA Extension
December 3, 2024
Extending the individual and estate provisions from the Tax Cuts and Jobs Act (TCJA) expiring at the end of next year without offsets would add $3.9 trillion ($4.5 trillion with interest) to deficits through Fiscal Year (FY) 2035, at a time when debt is already approaching record levels and climbing unsustainably.
Policymakers should pursue deficit reduction next year, or at the very least ensure any tax cuts or spending increases – including extensions – are fully offset to avoid worsening the fiscal outlook. An important way to achieve this goal is to minimize or eliminate the gross fiscal impact of any TCJA extension in the first place – something at least eight organizations have done with their own tax plans and that others can do with our Build Your Own Tax Extensions tool.
From the Committee for a Responsible Federal Budget
QUINNSCOMMENTARY 
Al Lindquist:
Oh please another missive claiming that taxes are the problem and if we just raise them we can move in the right direction–let’s deal with some facts;
1. looks like the budget deficit for ’24 clocked in at $1.9 trillion–which is 6.7% of GDP. in the absence of war or a major recession this is an all time high.–in 2012 we came in real close to the numbers above which was after the Financial Panic and Great Recession (’08-’09), but unemployment was averaging 8.3% not the 4.0% of 2024.
2. In 2019 the economy was at a pre-COVID peak and 2024 is also at a peak-business cycle–in 2019 the deficit was 4.6% of GDP and this year at 6.7% it is 2.1% points higher. Is it higher because of less revenue???
3. In the past 5-years revenue as a share of GDP has risen from 17.2% of GDP from 16.3%. Revenue in 2019 totaled $3.5 trillion and this year $4.9 trillion—-$1.4 trillion more.
4. where is the spending problem?? (1) interest on the federal debt–5 years ago 1.8% of GDP–2024 3.1% of GDP.— (2) health care (Medicare and Social Security) was 5.3% of GDP in 2019 and this year 5.8% of GDP— (3) mandatory spending (like forgiving student loans) was 2.7% of GDP in 2019 and this year 3.8% of GDP.
Let’s deal with facts and not some rant that we need higher taxes–guaranteed that folks like Quinn will be back at the “we need more revenue” table 3-5 years down the road from any tax hike. They will never be satisfied.
Spending is the issue and it will not be easy but we better get a grip on it or a recession will wreck havoc on the economy. Have you been reading about France and Germany?
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Increasing tax revenue is always the first choice of the political class. Let’s do some trimming on the spending side and see where we stand. It’s a novel idea that Washingtonians might find useful. Dropping the student loan giveaway would be useful if Biden hasn’t been able to finish his scheme by Inauguration day.
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