Tax reform is a hot political issue, and therefore, so are federal budget deficits. A big question about what the Trump administration and Congress might hammer out on taxes is: Will tax reform be revenue neutral or will it expand the budget deficit?But it’s important to keep in mind that all budget deficits are not created equal.In simple terms, there are three main causes for an increase in the federal government’s budget deficit. First, the size of government increases, with the acceleration in government spending outrunning any increase in federal revenue. Second, a slowdown in the…

More…

Comments are closed.