Rising Deficit Projections Renew Debate Over Taxes and Spending

The federal budget deficit is projected to rise again after dropping in 2022, reviving debate over taxes and spending.
Major drivers of the deficit are politically sensitive - Obamacare subsidies favored by Democrats and individual tax cuts from 2017 favored by Republicans.
Allowing Obamacare subsidies or parts of the Trump tax cuts to expire in 2025 could generate hundreds of billions in savings.
Some Republicans want to cut spending to pre-pandemic levels, but that could risk a government shutdown opposed by Democrats.
Bipartisan compromise will likely be needed on taxes and spending, but history shows extensions of expiring policies may be more likely.

huffpost.com

Relevant topic timeline:

9/11/2023

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