Politics
Opinion: Extend Trump's 2017 tax cuts to promote growth, but cut spending too
America approaches a critical juncture. Many provisions of the Tax Cuts and Jobs Act of 2017 are set to expire this year. Congress could let them lapse, but that would mean a large, economically damaging tax hike for most Americans. Lawmakers could make all the cuts permanent, but without revenue offsets that would deepen the nation’s disastrous debt load.
There is a more targeted and responsible way to deal with this fiscal dilemma.
It’s a common, politically fueled mistake to talk about cutting taxes without also talking about our fiscal situation. We’re $37 trillion in debt — going on $59 trillion in a decade — and after years of alarming growth, the annual spending deficit is roughly $2 trillion. We also must grapple with the looming entitlement crisis, and interest payments on government debt are the fastest-growing budget item. Times are changing, making fiscal responsibility more crucial than ever.
While the upfront cost of the tax cuts back in 2017 was $1.5 trillion, on paper, to make them permanent could cost $4.6 trillion. The actual cost should be cheaper, as projections underestimate a likely increase in taxable income, investment and growth. But we shouldn’t deny that there is a significant cost.
There are also plenty of lessons to be learned from the 2017 reform. The first is that not all tax cuts are equally pro-growth. As such, we should make permanent only the most pro-growth provisions and allow others to expire or be extended on a short-term basis.
To the extent that the 2017 cuts spurred growth and higher revenue, that was mostly the product of the permanent reduction of the corporate tax rate from 35% to 21%. This provided businesses with long-term certainty, encouraging investment, capital formation and wage growth. Unlike temporary tax cuts, which lead to short-term boosts but create uncertainty, a permanent lower rate lets firms plan, expand operations and increase productivity.
Paired with the soon-to-expire provision that allows firms to fully expense their investments, the permanent corporate cuts attracted more domestic and foreign investment, leading to higher economic output and job creation over time.
A new Hoover Institution study reveals that businesses are more responsive to corporate tax changes than previously thought. Analyzing the 2017 cuts, Kevin Hassett (the National Economic Council’s new director), Jon Hartley and Josh Rauh found that a one-percentage-point reduction in the cost of capital can boost investment rates by up to 2.4%, surpassing earlier estimates.
Congress should hence prioritize making full expensing of capital investment permanent. It could also extend it to investments in structures.
Similarly, the cuts to individuals’ tax rates should be made permanent. This provision encourages work, savings and investments, especially for high earners, fostering a more dynamic and resilient economy. Recent research by Rauh and Ryan Shyu on California tax increases shows how much more sensitive high-income filers are to rate changes than most research generally assumes. The economists looked at taxpayers’ responses after Proposition 30 increased marginal tax rates by up to three percentage points for high-income households. An extra 0.8% of these taxpayers left the state as a result, and those who stayed reduced taxable income, eroding up to 61% of expected revenue within two years. This sensitivity to high tax rates and our progressive federal tax code mean that letting individual tax cuts expire will have a bigger impact than projected, and extending them will have a smaller deficit impact than most fear.
While the economics are straightforward, congressional rules are not. Budget reconciliation is a special process allowing Congress to pass tax, spending and debt-related bills with a simple Senate majority, bypassing the filibuster. But it’s limited to budgetary matters by the Byrd Rule and cannot increase the deficit beyond a 10-year window without offsets.
That leads us to the second lesson: Legislators should make permanent the 2017 measure’s revenue-raising provisions and cut some spending as well.
Extending the limits put on the state and local tax (SALT) deduction and mortgage interest deduction, and the removal of the personal exemption (a $4,050-per-household-member exclusion from taxable income) would generate significant revenue — more than covering the cost of the most growth-oriented tax cuts. Congress also needs to remove other tax breaks such as the corporate SALT deduction, energy subsidies and incentives for stadiums, just to name a few, and cut other spending to make it work.
Finally, all the other, costlier and less pro-growth (though popular) provisions should be extended on a temporary basis. These include the Child Tax Credit expansion, the larger standard deduction and alternative minimum tax reductions, which could be set to expire in a few years instead of being made permanent. That would help manage deficits while giving time for Congress to debate each one.
A similar approach could apply to Trump’s proposed new tax breaks on tips, overtime pay and Social Security benefits, which aren’t pro-growth and could cost $5 trillion over a decade.
A one-vote Republican House majority makes the process of extending the tax cuts even through reconciliation challenging. Setting strict priorities and guidelines should help get the job done. However, the key to success will be supporting growth of the economy without ballooning the deficit and the debt.
Veronique de Rugy is a senior research fellow at the Mercatus Center at George Mason University.
Politics
Commentary: No, Mr. Hilton, our elections are not ‘a joke.’ It’s time for you to stand up to Trump
Well, that didn’t take long.
A day after California’s primary election, President Trump took to social media with baseless claims of election fraud — predictable, but also dangerous.
“Look what’s happening in California, the Dumocrats, right before our very eyes, are stealing the Vote,” Trump wrote in one post.
“There’s BIG cheating by the Dumocrats in California,” he wrote in another, apparently enamored of his latest juvenile slur.
Never mind that his candidate, Steve Hilton, is in the lead — for now anyway.
California has once again become the main dish on Trump’s buffet of bull-hockey as he continues to undermine democracy and consolidate authoritarian power, using this disingenuous and patently untrue narrative that American elections are rigged by shadowy Democratic forces working in collusion with illegal immigrants.
That last part is called the Great Replacement Theory, the idea that “elites” are replacing white people — and white voters — with Black and brown immigrants in a bid to destroy white culture. It’s at the heart of Trump’s voter fraud allegations.
The twist this time is that Hilton, the man who wants to represent all Californians, seems to be jumping on the election fraud conspiracy train with the president. I get it, there’s the MAGA base to feed, and it’s a base that feasts on outrage and fakery. Serving up resentment glazed with lies and propaganda has been the MAGA playbook for years under Trump, a strategy that no one can deny has been heartbreakingly effective.
But Hilton is a smart man and must certainly know that voter fraud is rare, to the point of being inconsequential to election outcomes. Hilton by his own admission understands voting patterns, and that in this cycle, Republicans have voted early and often by mail, despite Trump’s claims that all vote-by-mail should be suspect. So Hilton understands that early votes have skewed his way, and that later vote tallies will likely favor Democrats.
And Hilton is definitely intelligent enough to expect that in a state where Democrats outnumber Republicans nearly three to one, he will not keep the top spot in this primary, and a slim chance remains that he will not make it into the top two. That’s just simple math.
So if Hilton truly seeks to represent this state as its top elected executive, now is the time to renounce election fraud myths and stand up to Trump’s lies. If Hilton can’t say that he believes our recent election was free and fair, then he has no business being our governor.
Unfortunately, that doesn’t seem to be the path he’s taking, even as it seems increasingly likely that he will advance to the general election.
This week, speaking with far-right podcaster and former Turning Point USA creative director Benny Johnson (who was allegedly duped into working for a Russian influence operation), Hilton said that while “so far we’re not seeing any signs” of cheating, “we’re going to be all over it. We’re not going to let them do that.”
Hilton was responding to a question from Johnson on whether Hilton will sue over “cheating.”
On a post-election appearance with Laura Ingraham, the conservative Fox News host who has repeatedly promoted the Great Replacement Theory, Hilton delved into more conspiracy.
“Just to really underline the point that you made about the corruption,” he told Ingraham an anecdote about supposed fraud in a previous election cycle when a “whistleblower” at the post office told him that they were instructed that a handwritten postmark was acceptable when sorting ballots to deliver to the county registrar.
“It’s just unbelievable, and of course, that’s why so many people don’t believe the results, but it just undermines confidence,” he told Ingraham, certainly knowing that the post office forwarding a ballot on to a county registrar in no way means it will be certified or counted. Would we really want the USPS deciding which ballots to deliver? Disingenuous on Hilton’s part at best.
“The whole thing is a joke,” Hilton went on to say of California elections, which of course, is absurd.
Thursday, when I asked Hilton’s team to speak with him about his views on voter fraud, they sent back a response that focused on the slowness of the California vote count; voter rolls Hilton has described as “wildly inaccurate,” which is a wildly inaccurate claim; and two instances of actual fraud with voter registration — not examples of votes that were counted.
To be sure, all those items are important. Any malfeasance should be punished, and the system should always strive to improve.
But how hard is it to simply be against fraud, while accurately acknowledging that it is rare and our current system provides accurate results?
I am against voter registration fraud. I am against vote fraud. I am absolutely pro-democracy, including policies such as mail-in voting that increase participation.
I do not believe that there is widespread fraud in the California primary, or in American elections in general, because the evidence does not support that conspiracy. I do not believe that Democrats are running a decades-long, nationwide conspiracy to replace white voters with votes from Black and brown undocumented immigrants, because that is both false and racist.
Pretty basic stuff, and statements in line with the values and common sense of the majority of Californians Hilton says he will represent.
If Hilton can’t come out and clearly say that Trump is wrong — about fraud and about the Great Replacement Theory — can he really be trusted to represent the values of the Golden State?
Politics
Video: Jan. 6 Rioter Hired by Pentagon
new video loaded: Jan. 6 Rioter Hired by Pentagon
transcript
transcript
Jan. 6 Rioter Hired by Pentagon
Elias Irizarry, who pleaded guilty to climbing through a broken window at the Capitol on Jan. 6, 2021, now works for an office responsible for uncovering and defending against terrorism plots at the Pentagon.
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“Full pardon or commutation?” “Full pardon.”
By Alisa Shodiyev Kaff
June 4, 2026
Politics
Democrats split over Tlaib’s Lebanon measure as Republicans seize on Hezbollah omission
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Democrats splintered over a resolution seeking to block the U.S. from assisting Israel’s war against Hezbollah, an Iranian-backed terrorist group, on Thursday.
The measure, offered by progressive Rep. Rashida Tlaib, D-Mich., would require President Donald Trump to withdraw U.S. forces from Lebanon. For months, Israel and Hezbollah, a U.S.-designated terrorist group and Iranian proxy, have been at war in southern Lebanon, but the United States has not joined the conflict.
A bipartisan coalition of lawmakers, including House Minority Leader Hakeem Jeffries, D-N.Y., rejected the measure. Critics argued the resolution could aid Hezbollah and potentially hamstring U.S. military operations in the country.
Tlaib’s resolution failed 92-324, with more than half of House Democrats joining nearly all Republicans to vote it down.
The Lebanon war powers resolution divided Democrats, with House Minority Leader Hakeem Jeffries, D-N.Y., joining Republicans in rejecting the measure. (Aaron Schwartz/Bloomberg)
REP RASHIDA TLAIB MOVES TO BLOCK US OPERATIONS IN LEBANON BUT IGNORES HEZBOLLAH
Rep. Thomas Massie, R-Ky., an Israel critic, was the lone Republican to support Tlaib’s measure. Meanwhile, Reps. Derek Tran, D-Calif., and Betty McCollum, D-Minn., voted present.
House Democratic leaders said shortly before the vote they would oppose Tlaib’s resolution and work with the progressive lawmaker on a narrower measure exempting some U.S. military operations in the country. Their statement also denounced Hezbollah as a “violent terrorist organization” and a “sworn enemy of the United States.”
Tlaib, who has accused Israel of committing “ethnic cleansing” in Lebanon, did not mention Hezbollah in her resolution. She and other proponents of the measure also avoided discussing the Iranian proxy force during heated floor debate over the measure.
Republicans highlighted the omission and accused the legislation’s supporters of serving as “proxies for Hezbollah.”
“Apparently they don’t want to see Israel killing Hezbollah, even though it’s Hezbollah that is killing Israeli children, Israeli adults, Israeli elders,” House Foreign Affairs Committee Chairman Brian Mast, R-Fla., said Wednesday, referring to his Democratic colleagues.
Tlaib asserted that her resolution would only affect U.S. forces actively engaged in hostilities. Republicans, however, disputed that claim and suggested it would hurt U.S. efforts to counter Hezbollah.
“It doesn’t say anything about [whether] you can keep the Marines that are in the embassy,” Mast said, referring to the U.S. embassy in Beirut. “That’s a pretty big oversight. It doesn’t say anything about whether we can keep United States armed forces that are training missions with the LAF [Lebanese Armed Forces]. Again, pretty big oversight.”
Rep. Rashida Tlaib, a Democrat from Michigan, attempted to bar U.S. forces from joining Israel’s war in Lebanon. (Tierney L. Cross/Bloomberg)
RASHIDA TLAIB HIT WITH HOUSE CENSURE THREAT, ACCUSED OF ‘CELEBRATING TERRORISM’ IN PRO-PALESTINIAN SPEECH
The debate turned personal when Rep. Max Miller, R-Ohio, a member of the House Foreign Affairs Committee, linked Tlaib to Hezbollah.
“Hezbollah is a terrorist organization … and its members are butchers that you like to hang out with to a certain extent,” the Ohio lawmaker said, referring to Tlaib.
A shouting match between the two then broke out, with Tlaib demanding that Miller’s remarks be stricken from the record.
The presiding chair ultimately complied with her request, but Miller doubled down on his remarks.
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“Yes, I said it. I own it, and I stand by it,” Mast said on behalf of Miller on the floor.
Tlaib’s failed war powers resolution comes as Iran has sought to tie Israel’s invasion of Lebanon to its ceasefire negotiations with the United States.
Hezbollah, which has long helped Iran project power in the region, rejected a ceasefire agreement between Israel and Lebanon’s government Thursday.
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