U.S. debt to almost reach limit amid Trump tax bill vote

The debt of the United States will soon reach the debt limit as the Trump administration proposes its grandiose tax bill.

The president, along with members of his GOP House caucus, have proposed a new tax bill aimed at renewing the Tax Cuts and Jobs Act of 2017 as well as adding additional tax cuts on all groups of society. The bill has received heavy opposition from House Democrats who have argued that the tax bill would exacerbate the debt crisis as it would worsen the national deficit. Nevertheless, the Republican majority in the House have voted in a narrow vote with 215-214, and it has advanced to the Senate in which Republicans will have a more solid shot of passing the bill.

Meanwhile, the U.S. debt has almost reached the debt limit. Now measuring $36.8 trillion, the tax bill essentially required a higher debt limit as implementing a limit increase in another bill would not be possible. Therefore, the bill would both increase the debt limit while increasing the federal deficit.

This willingness by the House to increase the debt limit highlights a deeper trend in the U.S. treasury in that the deficit will only keep climbing up; the president's extravagant tax reductions on all groups of society, especially the top 1% (from corporate tax reductions) are not being negated enough by spending cuts.