The U.S. national debt reached $20 trillion for the first time ever last Friday after President Trump signed a bipartisan bill temporarily raising the nation's debt limit for three months. While at Camp David, Mr. Trump, with the stroke of his presidential pen, increased the statutory debt last Friday by approximately $318 billion, according to the Treasury Department. Before the bill's completion, the U.S. debt was sitting around $19.84 trillion.
The U.S. achieves this debt milestone as President Donald Trump looks to cut taxes, something that will likely increase annual deficits and lead to a mushrooming of the U.S. national debt according to the New York Times.
The Urban-Brookings Tax Center estimated the cost of the cuts Mr. Trump proposed during the campaign at $6.2 trillion, assuming no additional growth, and just under $6 trillion when growth is factored in. Mr. Trump also wants to eliminate the estate tax and the alternative minimum tax, each of which would cost the Treasury hundreds of millions in revenue.Mr. Trump has said he strongly supports immediate expensing of capital expenditures, which many economists agree would encourage growth. The Tax Foundation estimates that such a change from current depreciation schedules would cost the Treasury $2.2 trillion over 10 years.That would raise the 10-year revenue loss to well over $8 trillion.