Tax bill should stimulate domestic economy, but?

 WILL ECONOMIC BENEFITS INCREASE REVENUES?

DOES NOT REDUCE DEFICIT OR DEBT

The 2026 budget has passed the House and it is likely to pass the Senate, but we can expect modifications. It appears that this bill will have a positive effect on the domestic economy, but does not address the biggest threat to the country, the unsustainable deficit and debt.

There have been numerous cuts in discretionary spending totaling over $160 billion, most of this is grants, surveys, and nonessential spending, but will have an effect on someones present occupation.

We see that the elimination of income tax on tips will be a positive for the restaurant business as it may help to incentivise more people to take those jobs, many have been struggling to have enough personnel. This tax has always been unenforceable and favored restaurants with cash over credit card payments. I suspect that social security and medicare tax will remain. We can expect similar treatment to the elimination of tax on overtime. I guess this is a little justice for those who work 60 hours as opposed to those who work 40 hours a week.

Deductible interest on domestic car loans may help the domestic car business.

There really is not a cut in taxes, just the making of the 2017 tax cuts permanent. These taxes going up, would have been a negative for the economy.

The new incentives and reforms are looking positive except for 1 thing, it does not address the debt and the now permanent deficit spending. This will add to inflation, the cost of the interest on the debt and the possibility of a debt crisis spiral.

With the cuts to the spending they could have sent a message to the world that they were serious about addressing the fiscal mismanagement, but instead they moved the savings to the bloated defense budget. A budget that has never been audited and appears to be giant slush fund for contractors and political donations. I suspect that it's just another threatening message to foreign opponents that we are preparing for war. A better message would have been that we are making the necessary reforms to make the dollar and America a strong nation from within.

I doubt that any Senators will dare to question the defense budget, but will succumb to the narrative that Russia and China are a threat to our survival, when it is they, who through their irresponsibility, is the biggest threat to the nation.