With the national debt hitting record-breaking highs, Axios chief financial correspondent Felix Salmon had bad news for MSNBC on Wednesday: President Donald Trump’s tax cuts would never pay for themselves.
Host Stephanie Ruhle brought up the president’s insistence that his tax cut will generate enough economic growth to pay for itself. “We know it takes time for that to happen,” she said. “But why aren’t we seeing it yet?”
“Because it’s not going to happen,” replied Salmon as Ruhle groaned audibly. “No one believed that when they insisted it. No one believes it now.”
“That’s not true,” she shot back sarcastically. “Republicans did.”
“We have seen actually that national debt increasing much faster than even the pessimists thought it would when the tax cut was passed,” Salmon continued, pointing to “massively” slower corporate earnings. “All of this amazing new growth we were promised from the tax cuts isn’t happening. It’s like a single one-shot sugar high which increases the debt in perpetuity without really giving us anything sustainable.”
“The CBO is saying the deficit will keep rising topping $1 trillion annually beginning in 2022,” Ruhle said to fellow panelist and former investment banker William Cohan. “Do you see any evidence that the tax cuts are going to pay for themselves?”
“There’s certainly no evidence yet,” said Cohan, who added that he agreed with Salmon’s pessimistic take. “This was a president who as candidate said he was going to eliminate the national debt and in fact, he’s done pretty much just the opposite going from $19 to $22 trillion in record time, trillion dollar budget deficits.” He added that United States is “awash is debt”, citing trillion in student loans, credit card debt, and auto loans. The country was so saddled with debt, Cohan added, that “a serious problem in the near term” was inevitable.
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WATCH LIVE: Trump holds mask-optional Mount Rushmore rally and fireworks celebration
President Donald Trump left the White House during the COVID-19 pandemic on Friday to attend an Independence Day event in South Dakota.
Trump was told not to attend but did so anyway.
“Trump coming here is a safety concern not just for my people inside and outside the reservation, but for people in the Great Plains. We have such limited resources in Black Hills, and we’re already seeing infections rising,” the Oglala Sioux president, Julian Bear Runner, told the Guardian. “It’s going to cause an uproar if he comes here. People are going to want to exercise their first amendment rights to protest and we do not want to see anyone get hurt or the lands be destroyed."
Trump Jr’s girlfriend tests positive for COVID-19 in South Dakota ahead of the president’s event: report
Yet another senior Donald Trump advisor has tested positive for COVID-19.
"Kimberly Guilfoyle, the girlfriend of President Trump’s eldest son and a top fund-raising official for the Trump re-election campaign, tested positive for the coronavirus on Friday before a Fourth of July event at Mount Rushmore, a person familiar with her condition said," The New York Times reported shortly before Trump's speech began.
Trump supporters shouted ‘go home’ at Native Americans protesting Mount Rushmore rally on their land: report
The protesters argued that it is their land after the Ft. Laramie Treaty of 1868, which was ratified by the U.S. Senate.
The Black Hills of South Dakota, where Mount Rushmore is located, was among the lands the tribes received to bring about an end to Red Cloud's War, which is also known as the Bozeman Trail War.