Economic Policy News
The Daily Signal provides economic policy news with reporting, analysis, and commentary on markets, growth, and fiscal responsibility.
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- Opinion
7 Ways Congress Can Rein in Out-of-Control Spending
Congress achieved major success in 2017 by passing the first meaningful tax reform in decades, but fell short in other areas of the budget and spending. This year, important issues loom, including defense and nondefense appropriations for the remainder of the year, the debt limit, an infrastructure plan, and health care and entitlement reforms, among…Justin Bogie -
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5 Ways Congress Fell Short in Spending Your Money in 2017
As 2017 comes to a close, it’s worth remembering that America’s mountain of debt continues to grow. Here are five key facts about federal spending in 2017 to remember: 1. The deficit reached $666 billion. By many, 666 is known as the number of the beast in the Book of Revelation in the New Testament….Romina Boccia -
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The Economic Impact of the Tax Cuts and Jobs Act
The Tax Cuts and Jobs Act, which is expected to be signed into law today, would reform the tax code by lowering federal marginal rates for most households, corporations, and small businesses. We have revised our previous estimates of the House and Senate versions of the bill to reflect changes made by the conference committee….Parker Sheppard -
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Sobering Film on Nuclear Attack Shows Need for More Nuclear Defense Spending
The Heritage Foundation’s documentary “33 Minutes” may not be the most cheerful holiday season film, but its warning to the American public about the risk of nuclear attack could not be more timely. In recent months, North Korea’s missiles have grown in range and capability. The most recent missile it tested, the Hwasong-15, can reach…Thomas Wilson -
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How Congress Can Boost Defense Spending Without Busting Budget Caps
Congress and the president are reportedly working on another backroom budget deal that might raise the Budget Control Act spending caps by up to $200 billion over the next two years. Congress should not pass another deal that piles more deficit spending onto future generations. Congress should strengthen and extend spending limits in the Budget…Justin Bogie -
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House Conservatives Advocate Breaking Caps on Defense Spending
With government funds running out Dec. 8, House conservatives argue that lawmakers should boost military spending in a new funding bill. “We are breaking the caps on defense,” Rep. Jim Jordan, R-Ohio, said Thursday at Conversations with Conservatives, a monthly Q&A with reporters hosted by House conservatives and The Heritage Foundation. Jordan, along with other…Rachel del Guidice -
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Podcast: What You Need to Know About the Upcoming Budget Deadline
Congress is facing a budget deadline Dec. 8. Heritage Foundation’s Romina Boccia explains what’s at stake. Plus: the latest on the tax reform debate, and Poland’s push for no work on Sundays.Katrina Trinko -
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Defense Spending Bill Gets It Right on Nuclear and Missile Defense
Last week, Congress passed the fiscal year 2018 National Defense Authorization Act, sending it to the president’s desk. This bill advances many commendable nuclear weapon and missile defense policies. The bill affirms Congress’ commitment to ensuring strong, extended measures of deterrence, and it addresses Russian arms control violations—including Russia’s potential violations of the New Strategic…Michaela Dodge -
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Congress Should Reject a Reckless Budget Deal That Busts Spending Caps
A new report from Congressional Quarterly indicates Congress will soon announce another backroom budget deal that would bust the spending caps set by the Budget Control Act. According to the report, the deal would break the discretionary spending caps by at least $182 billion over the next two years. If true, this would bust the…Justin Bogie -
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How the GOP Tax Bill Will Affect the Economy
The House passed its version of the Tax Cuts and Jobs Act on Thursday, a bill that would reform the tax code by lowering marginal rates for most households, corporations, and small businesses. The Senate is also working on its own version of the bill. Though the complete details are yet to be finalized, both…Parker Sheppard -
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GOP Tax Plan Would Revitalize US Economy, Give Significant Tax Relief
House Republicans unveiled their plan to update the nation’s tax code on Thursday. If they are successful at passing the plan—known as the Tax Cuts and Jobs Act—it will mark the first time in more than three decades that Americans will have a chance to experience the benefits of comprehensive, pro-growth tax reform. Tax reform…Romina Boccia -
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Tax Reform Means Higher Pay for Americans, Council of Economic Advisers Predicts
Lowering the corporate tax rate will spur economic growth and encourage business owners to invest more in their businesses, leading to higher wages for employees, according to a new report from the president's Council of Economic Advisers. The report on tax reform, released Friday, focuses on the expected results of decreasing the corporate tax rate…Casey Ryan -
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Why Congress Must Preserve and Extend the 2011 Spending Caps
The Budget Control Act, passed in 2011, is one of the few mechanisms currently in place to control Congress’ appetite for spending. With the national debt projected to skyrocket over the next decade, now is not the time to abandon it. An upcoming report this week from The Heritage Foundation will detail the ways Congress…Justin Bogie -
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We Hear You: Debt, Democrats, Deductions, Deficit-Spending, and the Tax Code
Editor's note: We've had so much reader input on Republicans' tax reform proposals that we're devoting a second consecutive compilation to it. Enjoy, and don't forget to write us at [email protected].—Ken McIntyre Dear Daily Signal: Regarding the commentary by Rep. Mark Walker, R-N.C., I think members of Congress are bailing water in a sinking boat…Ken McIntyre -
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Deduction for State and Local Taxes Stunts Economic Growth, Group Warns
Congress should get rid of federal taxpayers’ deduction for state and local income taxes because it ends up costing most taxpayers billions of dollars, an organization that advocates state-level reforms says in an open letter to lawmakers. Removing the deduction will save $1.5 trillion over the next 10 years, the American Legislative Exchange Council said…Ian Snively -
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Why Washington’s Spending Addiction Is a Threat to Tax Reform
I’m not sure what left the bigger impression on me after my visit with The Heritage Foundation’s Romina Boccia and Adam Michel—the awesome bigness of the federal government’s fiscal challenges or the mindsets of those we elected to deal with them. The problem is enormous. The federal government spends $4 trillion per year. It takes…Bill Walton -
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‘Feminist Economics’: Coming to a College Campus Near You
If you haven’t yet heard of “feminist economics,” get ready, because liberal economists, policy organizations, and activist groups are pushing the concept as the next battleground for women’s rights. Because condemning catcalling and “toxic masculinity” in cultural terms isn’t enough, they’re now targeting government policies and institutions they contend are oppressive and discriminatory toward women….Kelsey Bolar -
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Conservatives Call for Tax Reform to ‘Put Small Businesses Back at the Heart of America’s Economy’
Meaningful tax reform is about putting small businesses at a competitive advantage, the leader of a nonpartisan organization committed to limited government and economic freedom said Friday. “Our cause is simple,” Alfredo Ortiz, the president and CEO of the Job Creators Network, said at the rally near IRS headquarters in Washington. “Put small businesses back…Rachel del Guidice -
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Trump’s Budget Deal With Democrats Will Only Worsen Our Fiscal Situation
Late Wednesday night, the Senate released the text of legislation that would provide disaster relief funding and other federal aid for Hurricane Harvey and other 2017 disasters, suspend the debt limit, and extend the National Flood Insurance Program and government funding into December. The latest budget deal forged by President Donald Trump and key Senate…Justin Bogie