The Fiscal Fallout of Trump's Major Budget Proposal

The Fiscal Fallout of Trump's Major Budget Proposal

This article is adapted from a discussion originally featured on a prominent political podcast. The conversation explores the complexities and consequences of recent legislative efforts.

It is important to note that the analysis here was composed prior to the House's approval of the domestic policy bill on May 22.

In contemporary politics, there seems to be an unusual consensus: landmark legislation often carries catchy triple-B branding. Following President Joe Biden’s 'Build Back Better' initiative, former President Trump has introduced his own 'big, beautiful bill.'

However, an alternative characterization might be more fitting—this legislation could be described as a 'Big Budget Bomb.'

As of May 21, the potential fiscal damage posed by this bill is difficult to overstate, partly due to its sheer scale.

The budgetary impact, however, is just the starting point for the challenges this bill could present.

When evaluating the magnitude and expense of such legislation, it is crucial to differentiate between the total cost — which includes new spending and tax reductions — and the portion of that cost that will be covered versus the amount that will increase the national debt.