#taxcuts — Public Fediverse posts on home.social

President Trump has declared war on the prized independence of the Federal Reserve in an attempt to essentially run monetary policy out of the White House. He has attempted—illegally and on dubious grounds— to fire Fed Gov. Lisa Cook, threatened to fire Chairman Jerome Powell, and installed a top White House economist into a key Federal Reserve position. This White House pressure surely drove the Fed’s decision to reduce rates by 0.25 points on September 17.

Going to war against the Federal Reserve seems baseless when current interest rates—while above the anomalous 2010s levels—are not high by historical standards. Moreover, rates are not holding back the current economy, and they may even be too low to combat the recent inflation uptick. However, President Trump has offered an additional argument: Lower interest rates would reduce Washington’s interest on the national debt, “saving us $1 Trillion per year” in reduced budget deficits. This sacrificing of Federal Reserve independence to help the Treasury sell cheaper debt is known to economists as “fiscal dominance.”

Setting aside legitimate concerns over central bank independence and the illegal firing of Fed officials, would fiscal dominance really provide substantial budget deficit savings? The clear answer is no.

Trump is correct that mounting interest costs threaten to bury the federal budget. The toxic combination of soaring debt and elevating interest rates has expanded what the government spends on interest annually from $352 billion in 2021 to nearly $1 trillion today—heading toward $2 trillion within the next decade. Interest costs are the second-biggest budget item after Social Security, having recently surpassed Medicaid, defense, and Medicare spending. Within a decade, nearly 30 percent of all annual taxes paid may go toward interest on the national debt. To put that in perspective, it amounts to nearly four months of annual federal tax revenue.

Yet instead of working with Congress on a deficit reduction plan, President Trump has chosen to increase deficits further with more tax cuts, and then try to force downward the interest rate on the federal debt.

Continue/Read Original Article Here: Trump’s Attack on the Fed Won’t Fix the Deficit – Jessica Riedl – The Dispatch

#2025 #America #DonaldTrump #Education #FederalDeficit #FederalReserve #Health #History #JeromePowell #Libraries #LibraryOfCongress #LisaCook #Opinion #Politics #Resistance #Science #TaxCuts #TheDispatch #Trump #TrumpAdministration #UnitedStates #WhiteHouse

#america #donaldtrump #education #federaldeficit #federalreserve #health

DoomsdaysCW @[email protected] · 2025-06-12 · 20:05 UTC

#Trump’s #BigBill Would Let Him Expand His #LosAngeles #ImmigrationCrackdown ‘Everywhere’

“If it works out well in L.A., expect it everywhere,” a Trump official says of the admin’s plans for #militarized #ICERaids around the country

By Andrew Perez, Asawin Suebsaeng
June 12, 2025

"Donald Trump’s '#BigBeautifulBill' wouldn’t just force millions of #poor people off their #HealthInsurance and #FoodAssistance to help pay for more #TaxCuts for the rich.

"The Trump #TaxBill would steer tens of billions of dollars to Immigration and Customs Enforcement (ICE) for #detention capacity, employee bonuses, and to hire new agents. It would supercharge ICE’s ability to conduct raids, and allow the administration to expand the campaign of terror it’s waging on immigrants in Los Angeles to blue cities around the country.

"ICE’s aggressive worksite raids and courthouse arrests throughout the Los Angeles area have, of course, inspired a wave of protests — giving the president an excuse to send the U.S. military to a Democratic city, something he’s long fantasized about, while inspiring demonstrations across the country.

" 'This bill would give Donald Trump the ability to do what he’s doing [in California] on a scale we really haven’t seen before,' says #DavidBier, the director of immigration studies at the #CatoInstitute, a libertarian think tank. 'He will be able to replicate this militarized approach to Los Angeles across maybe dozens of American cities.'

"For Trump and key officials, including immigration-crackdown policy architect #StephenMiller, this is exactly the point, with Los Angeles currently being used as an autocratic staging area. They want to replicate this militarized, ramped-up blitz of ICE raids, backed by the U.S. armed forces, in several other Democratic strongholds — particularly if larger-scale protests spread to other cities.

"As Rolling Stone previously reported, the president and his senior officials have already mapped out near-term plans for how to further ratchet up the already tense blitz of ICE operations, especially in the coming days in Los Angeles, where the federal agents are now being protected by Trump’s literal troop deployment to the city, against the wishes of Democratic Gov. Gavin Newsom.

"Sources familiar with the matter tell Rolling Stone that senior Trump administration officials are closely monitoring the situation in L.A. as a test case for what they want to do soon in places such as #Chicago, #philadelphia #BostonMA, or the #WashingtonDC, area."

Archived version:
https://archive.ph/SgWWL

#BigUglyBill #USSenate #USPol #Authoritarianism #protestors #SilencingDissent #USPol #NoKings #Protest #Solidarity #Immigrants #MassDeportation #EndICE #StopICE #Project2025 #MAGA #ThisIsFascism
#USConstitution #DueProcess #FirstAid #JustFollowingOrders #NationalGuard #Resistance #FashPatel #TrumpIsANazi #StephenMillerIsANazi #ResistICE #FuckICE #KillThePoor #EatTheRich #NoTaxBreaksForTheRich