• World News
  • Politics
  • Stock
  • Investing
  • Editor’s Pick
Time And Sales Reporter
Editor's PickInvesting

GOP Spending Cuts Too Small

by February 18, 2025
February 18, 2025

Chris Edwards

Republicans criticized President Biden for his huge spending and deficits, which spurred inflation and jacked up debt to dangerously high levels. The GOP are now in the driver’s seat and must reform the budget to ward off a fiscal crisis. Inflation is ticking up, borrowing costs are rising, and annual interest spending is now so huge it surpasses defense spending.

Last week, the House Budget Committee released a plan to extend the Trump tax cuts, boost spending on defense and security, and trim other spending. But the plan would make the government’s debt crisis worse! Debt held by the public would rise from $30 trillion in 2025 to $54 trillion by 2034. That huge 2034 debt load would be even larger than the $50 trillion in baseline debt projected by the Congressional Budget Office.

Many Republicans are not grasping the seriousness of the coming fiscal crunch. Relative to the size of the economy, reckless spending since 2001 has pushed federal debt to almost the peak reached during World War Two. The debt fell after the war, but today it is spiraling upwards even with steady economic growth and without a war.

With control of the House and Senate, now is the time for Republicans to cut. They should eliminate dozens of agencies that spend on activities that should be handled by the states or the private sector. President Trump appears open to major reforms, including abolishing the Department of Education. Congress should jump on the opportunity and deliver major downsizing legislation to the president’s desk.

a

How much should Republicans cut? The chart shows possible 2034 debt targets measured as a percentage of gross domestic product (GDP). A good target would be to cut spending enough to stabilize debt at the current 100 percent of GDP, which would avert a debt crisis.

Another goal would be to limit debt to no more than the CBO baseline. But in that case, we would still be on an unsustainable path with debt rising to 117 percent of GDP by 2034. 

Remarkably, the House Budget Committee chose a path of even larger debt growth than the CBO baseline, thus hastening the coming fiscal crisis. The plan would cut taxes by $4.5 trillion by 2034, increase defense and security spending by $300 billion, and cut other spending by a paltry $1.5 trillion. The net effect would be to boost the debt to 126 percent of GDP by 2034.

Without any law changes, total spending over the next 10 years (2025–2034) is projected to be $86 trillion. The GOP plan to cut spending by $1.5 trillion would be just a two percent cut. That would be pathetic, weak, and nowhere near enough to meet the nation’s massive fiscal challenge.

Americans voted for Republicans to tackle overspending, debt, and inflation. This year, Republicans can pass major spending cuts with majorities in the House and Senate. They have a supportive president in Trump and the tailwind provided by his DOGE initiative. Republicans must seize the moment.

Cato scholars examine the House and Senate budget plans here and here and propose major budget reforms here.

previous post
Deep State resistance taught Trump he needed to tame bureaucrats
next post
Should Governments Fund Research?

Related Posts

Editor’s Picks: Silver Price Hits 13 Year High,...

June 23, 2025

Canada Makes Tech Leadership Moves: Axl Launches, Carney...

June 23, 2025

Thick zones of HM mineralisation observed across Douala...

June 23, 2025

Tesla agrees to first deal to build China’s...

June 22, 2025

Tech 5: OpenAI/Microsoft Talks Get Tense, SoftBank Floats...

June 22, 2025

Oil prices rise more than 1% as Israel...

June 21, 2025







    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.




    Recent Posts

    • US Strikes Iran: What Comes Next For Stocks?

      June 23, 2025
    • Inside the Situation Room, where Trump and his national security team monitored ‘spectacular’ success on Iran

      June 23, 2025
    • Thomas Massie says he feels ‘misled’ by Trump after Iran strikes: ‘He’s engaged in war’

      June 23, 2025
    • JD Vance says Iranian nuclear program ‘substantially’ set back after ‘precise, surgical’ US strikes

      June 23, 2025
    • Israeli President Herzog: Israel ‘not dragging’ US into war with Iran

      June 23, 2025
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 timeandsalesreporter.com | All Rights Reserved

    Time And Sales Reporter
    • World News
    • Politics
    • Stock
    • Investing
    • Editor’s Pick

    Read alsox

    Elon Musk: Federal Agencies Are Like Weeds

    February 18, 2025

    The Wrong Door: Federal Agents Raid the Wrong...

    March 20, 2025

    Armenian organized crime rings charged with stealing $83...

    May 23, 2025