The big, beautiful billionaire tax-cut bill will hasten America's decline
Protesters attend a "Hands Off" rally to demonstrate against U.S. President Donald Trump on the National Mall on April 5, 2025 in Washington, D.C. (Photo by)
Ever since the defeat of the Axis Powers in World War II, America has been admired around the world as a beacon of equality, freedom and opportunity. That admiration helped the United States become the world's preeminent economic and military power over the last 80 years. While we have faced serious problems, like racial inequality, poverty and questionable wars, our elected representatives have usually been able to work together in an effort to address them. I fear that the era of America's economic and moral dominance is now faltering and headed into a period of decline.
U.S. House-passed tax bill weakens accountability at for-profit colleges, advocates say
The so-called big, beautiful bill, which the U.S. House of Representatives passed on May 22, is a symptom of the decline. It will greatly benefit the wealthy, while denying medical care, food assistance and other social safety-net programs to those on the lower income scale. The bill would substantially increase income inequality in the country and likely necessitate a $500 billion cut in Medicare spending. It is unfathomable that U.S. Reps. Russ Fulcher and Mike Simpson voted for the bill and that Gov. Brad Little strongly supported its passage. Unless the U.S. Senate stops the bill in its tracks, the states will have to increase their budgetary outlays or let their voters go without vital services.
The national debt consequences of the bill are also of great concern. It should be remembered that Trump added $8.4 trillion to the national debt during his first term, more than any other U.S. president. His big, beautiful bill would add an additional $3.8 trillion to the debt, which would raise the debt from its current $36.2 trillion to a whopping $40 trillion. That is a very serious problem in itself, but made substantially worse by other destructive actions he has taken that will seriously hinder the nation's ability to deal with that massive debt.
The U.S. lives wildly beyond its means by borrowing against the future. Instead of requiring wealthy corporations and individuals to pay their fair share of taxes, we simply finance the deficits by issuing government bonds.
Since the mid-1990s the GOP has forgotten that budget deficits can be prevented by raising adequate revenue. Thus, the national debt has ballooned from $5.6 trillion in 2000 to $36.2 trillion at the end of 2024. About $8.5 trillion of the debt is held by foreign governments and investors.
Foreigners have helped finance our debt because the U.S. has been regarded as a steady, reliable trustworthy nation. Our dollar is the coin of the international realm, and our government bonds have always been seen as a safe, reliable investment, particularly in times of international economic turmoil.
Donald Trump has shaken the world order by dumping on our friends and allies, including those closest to us – Canada, Mexico, the European Union, Japan and Korea.
He has disregarded trading relationships that have made America the leader of the free world. Trump's latest threat to impose 50% tariffs on European nations seems designed to drive away our steadiest, most-reliable trading partners and military allies. His erratic and self-defeating tariff actions have shown America to be an unreliable partner. Our friends and allies have started forging stronger trading relationships among themselves and with China, our chief international adversary. This will reverberate against U.S. economic and security interests well into the future.
The bond market has become increasingly edgy about Trump's erratic behavior. Investors are concerned about the safety of U.S. bonds, as evidenced by an increasing interest rate on our nation's bonded indebtedness. The big, beautiful bill promises to trigger a crisis in the bond market. A well-regarded economist has observed: 'The U.S. government bond markets are already shaky, long-term interest rates are rising, and it seems that foreign investors are fleeing the United States.' It is inconceivable that such chaos in the economic foundation of our country could have occurred since January.
America has long been regarded as the moral beacon of the world. As President Ronald Reagan put it in his Farewell Address — 'The shining city upon a hill.' That perception is no longer the case. A recent survey discloses that America's worldwide popularity has suffered a collapse since January. China is now regarded more favorably than the United States. Trump is viewed more negatively (58%) than Vladimir Putin (49%) and Xi Jinping (31%). Those dismal numbers foretell a decline in America's ability to sustain its position as the premier moral, economic and military power in the world.
SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Wall Street Journal
8 minutes ago
- Wall Street Journal
Trump's ‘Big, Beautiful' Bill Gets Slimmed Down in Senate
WASHINGTON—President Trump's 'big, beautiful' bill is getting smaller just as Republicans head into a crucial week, after the Senate's rules arbiter decided several controversial provisions don't qualify for the special procedure the GOP is using to bypass Democratic opposition. The tax-and-spending megabill centers on extending Trump's 2017 tax cuts, delivering on the spirit of his campaign promises to eliminate taxes on tips and overtime, and providing big lump sums of money for border security and defense. Those new costs are partially offset by spending cuts, in particular to Medicaid.
USA Today
9 minutes ago
- USA Today
Trump rips Massie over Iran strike comments, threatens to campaign for primary challenger
Massie said his "side of the MAGA base" is made up of "non-interventionists" who are "tired from all these wars." President Donald Trump lashed out at Kentucky Rep. Thomas Massie, a fellow Republican, over his criticism of U.S. airstrikes on three Iranian nuclear sites and threatened to campaign for the person running against him in the Republican primary next year. Soon after the military operation amid the Israel-Iran war was announced on June 21, Massie said the move was 'not Constitutional' on X. The day after the strike, Massie said it was 'a good week for the neocons and the military-industrial complex, who want war all the time" on CBS's "Face the Nation." Massie said his 'side of the MAGA base' is made up of 'non-interventionists" who are "tired from all these wars." Trump ripped into the lawmaker shortly afterward saying he was 'not MAGA, even though he likes to say he is.' 'Actually, MAGA doesn't want him, doesn't know him, and doesn't respect him,' Trump wrote on Truth Social on June 22. 'He is a negative force who almost always Votes 'NO,' no matter how good something may be.' Massie and Rep. Ro Khanna, D-California, had also introduced a resolution on June 17 to prohibit U.S. involvement in the Israel-Iran war without Congressional approval. Describing the bombings of the three nuclear sites as a 'spectacular military success' Trump called Massie a 'lightweight' congressman who was 'weak and ineffective.' The lawmaker was one of two Republicans who voted against his tax bill in the House of Representatives last month. 'He'll undoubtedly vote against the Great, Big, Beautiful Bill, even though non-passage means a 68% Tax Increase for everybody, and many things far worse than that,' wrote Trump. 'MAGA should drop this pathetic LOSER, Tom Massie, like the plague!'
Yahoo
12 minutes ago
- Yahoo
America's economy faces a potential war shock: Surging oil prices
The American economy faces the unwelcome prospect of reignited inflation after the United States launched strikes on three nuclear facilities in Iran. High oil and gas prices are a near certainty, experts say. The big question now: How long will the fossil fuels price spike last? Oil prices are expected to rise by about $5 per barrel when markets open Sunday night, according to experts. 'We are looking at $80 oil on the open,' said Andy Lipow of Lipow Oil Associates. US oil hasn't closed above $80 a barrel since January and has largely hovered between $60 and $75 a barrel since August 2024. Relatively tame oil prices have lowered gas prices to below $3 a gallon in many parts of the country, a major source of price relief for inflation-weary consumers. It's unclear if any major spike in oil prices will be sustained for a long period. Oil prices have risen about 10% since Israel's surprise attack on June 13 and then fell on Friday after US President Donald Trump announced a two-week deadline on whether to strike Iran. 'One shouldn't necessarily assume that just because the price of oil goes up, it's going to stay there. It doesn't,' said Joe Brusuelas, chief economist for the accounting firm RSM. The direction oil prices take is likely to depend on whether Iran's parliament decides to block the Strait of Hormuz, a key trade route that accounts for about 20% of the world's crude oil. On Sunday, Iran's Foreign Minister Abbas Araghchi said his country has 'a variety of options' when deciding how to respond to the US attacks and a prominent adviser to Iran's supreme leader has already called for the closure of the Strait of Hormuz. Bob McNally, president of consulting firm Rapidan Energy Group and former energy adviser to President George W. Bush, said that should Iran cut off the world's oil supply by closing the strait it would risk more military force from the United States and its allies. Iran could also attack infrastructure in the Persian Gulf that treats and exports oil and gas. 'It's possible they will decide the only thing that can dissuade President Trump is the fear of an oil price spike,' he said. 'They have to actually create that fear.' Appearing Sunday on Fox News, Secretary of State Marco Rubio called on China to prevent Iran from closing the Strait of Hormuz, adding that closing it would do more damage to other economies than the US economy. China buys a third of all oil that comes from the Persian Gulf, while the United States buys less than 3%. 'I encourage the Chinese government in Beijing to call them about that, because they heavily depend on the Straits of Hormuz for their oil,' Rubio said. Rubio added that closing the strait would hurt other countries' economies more than the US economy. Meanwhile, American consumers may soon feel a price shock at the pump. 'It takes five days or so for stations to pass along the prices they see in one day. If oil markets do surge today and then tomorrow, it could start showing up at the pump in a matter of hours,' said Patrick De Haan, vice president of petroleum analysis at GasBuddy, a fuel tracking platform. According to Lipow, should the Strait of Hormuz be affected, the price of oil could rise to $100 a barrel, which would raise gas and diesel prices by about 75 cents per gallon from recent levels. Meanwhile, US trade policies combined with the war with Iran 'strongly suggest inflation will be moving faster and higher over the next 90 days,' according to Brusuelas. Many mainstream economists argue that the low inflation of the spring represents a calm before the summer storm, when they expect prices to rise because of Trump's tariffs. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
