As part of a pledge to “Make America Great Again,” President Donald Trump and Republican lawmakers are pursuing aggressive economic stimulus while slashing taxes at the same time.
The result, budget analysts say, is likely to be swelling debts and deficits for the world’s largest borrower.
America’s budget deficit was already on an upward trajectory, thanks to an aging population and rising health costs. But it is now poised to take off.
After December’s sweeping tax cuts, which are expected to cut federal revenues by $1.5 trillion over ten years, the budget deal Trump signed Friday calls for an additional $300 billion in defense spending over two years.
The White House and lawmakers have also huddled over a $1.5 trillion plan to upgrade the nation’s infrastructure, with perhaps several hundred billion in taxpayer funds contributed in a possible public-private partnership.