A letter writer referenced the additional money people will get from the new tax cuts. He said, “It’s our money anyway.” No, sir, it is borrowed money, which the government — us — will have to pay interest on.
Every year, we pay the interest on the national debt, including the increase caused by this tax cut, through a combination of revenue and borrowing. The interest on the debt has to be paid.
Because the tax breaks are permanent for corporations (a broader term than many realize) and temporary for the writer, myself and others, our contributions to the revenue portion will increase again in about seven years.
Unless, of course, the tax reduction is extended, which will mean more, you betcha, borrowing to offset the extension.
The Kentucky state employees’ pension and budget problems caused by our politicians should be instructive. The national debt will also, at some point, have to be addressed.
Unfortunately, politicians typically do the right thing when all other options have been exhausted.