Two decades of unpaid-for tax cuts have eroded the federal government’s revenue base.
Most of the tax cuts passed in 2017 are set to expire in 2025. Altogether, these cuts cost the federal government about $350 billion a year, or 1% of gross domestic product. Their expiration marks a milestone in American tax policy.
The tax system of the 1990s could have financed the government we have today. But two decades of successive unpaid-for tax cuts eroded our nation’s revenue base. Without those tax cuts, federal debt as a share of the economy wouldn’t be projected to rise significantly over the coming decade.
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