‘Starve the beast’? The $40tn cost of Republicans’ false promises to cut spending
Summary
The United States government debt has reached $40 trillion, largely due to Republican policies aimed at cutting taxes without reducing spending. This strategy, known as "starve the beast," began with President Reagan and has continued through President Trump’s administration, leading to higher deficits and debt.Key Facts
- US government debt hit $40 trillion, up from $35 trillion less than two years ago when President Trump took office.
- The "starve the beast" strategy began with President Reagan in 1981, focusing on cutting taxes to reduce government revenue.
- Republicans have consistently cut income tax rates, estate taxes, and created tax deductions since Reagan’s time.
- These tax cuts have not paid for themselves through economic growth, but increased the budget deficit and debt.
- President Trump’s tax cut law, called One Big Beautiful Bill Act (OBBBA), contributed significantly to the rising deficit and debt.
- The federal deficit is about 6% of the nation’s GDP, and the total debt is approximately 123% of GDP, the highest since World War II.
- Paying interest on the debt costs about $1 trillion yearly, more than spending on defense or Medicare.
- Experts say the goal of these Republican tax policies was partly to limit Democratic presidents’ ability to manage the budget.
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