Posted on 06/27/2023 12:43:12 PM PDT by Twotone
The victor of the 2024 election is set to face a number of new legislative deadlines immediately upon entering office that could have drastic effects on the country’s economy.
More than a dozen candidates are eyeing the Oval Office in 2024, positioning themselves as the best choice to address the nation’s cultural and economic challenges. However, upon taking office in 2024, the winner of the presidential election must deal with the impending expirations of both the 2017 tax law as well as subsidies included in Obamacare.
On top of that, the debt limit bill is also set to expire just days before the president is sworn in, once again making it a top issue in a likely divided Congress.
Democrats are expected to push for a renewal of enhanced Obamacare subsidies that were passed in 2021, which also serves as a significant accomplishment for the party. That extension was passed as part of the Inflation Reduction Act, which is set to expire in 2025.
House Democrats made the Obamacare extensions a key part of their midterm campaigns in 2022, especially those competing in swing districts. That push is likely to emerge once again during the 2024 cycle, especially as Democrats seek to regain control of the House while also holding on to their slim majority in the Senate.
The subsidies at stake have helped lower premiums for about 13 million low-income customers since they were first enacted. If those subsidies expire, it could raise costs by hundreds of dollars for individual customers.
helped lower premiums for plans and ensured some low-income customers on the exchanges paid nothing or as low as $10 a month. It also ensured that anyone who earned more than 400% of the federal poverty level
Meanwhile, Republicans are likely to spend their time pushing for a renewal of the Tax Cuts and Jobs Act of 2017, which was passed under the Trump administration along party lines. The bill amended the Internal Revenue Code to provide reduced tax rates as well as modified deductions for people and businesses, resulting in roughly $3.6 trillion in tax cuts.
Many of those tax cut provisions are set to expire in 2025, with congressional Republicans likely wanting to continue it in some capacity because it was a signature policy accomplishment for the party when it was passed.
In previous years, the conflicting expiration dates could act as a negotiation tool for both parties to secure key legislative wins while offering compromises to the other side. However, that strategy may be easier said than done in the current political climate, as demonstrated by the debt limit negotiations just last month.
The nation’s borrowing limit is suspended until Jan. 1, 2025, under the Fiscal Responsibility Act passed last month by Congress. The country’s debt level is expected to be even higher by then, forcing Republicans to choose whether to raise taxes to help pay for those costs or to extend the cuts already passed in their 2017 bill.
Meanwhile, Democrats will be faced with a similar challenge as they look to extend their Obamacare subsidies because raising taxes is expected to be an unpopular proposal in several of the districts Democrats represent.
One way lawmakers could avoid such legislative headaches is by passing temporary extensions in the interim as both parties continue negotiations for more permanent changes. But doing so could amount to just kicking the can farther down the road, putting the nation’s economy into a more precarious position, according to some financial experts.
“There are other ways to have a deal that would be fairer to both sides that don’t involve sticking the bill to our grandkids," Marc Goldwein, senior vice president and senior policy director of the Committee for a Responsible Federal Budget, told Axios.
*The nation’s borrowing limit is suspended until Jan. 1, 2025, under the Fiscal Responsibility Act*
Why call it that? A responsible act would be a balanced budget.
Responsible? Congress?
They will do what they always do and kick the can on this debt bomb and the next one.
It’s what they do and “we the people” let them.
Laws sometimes have names which don’t make any sense.
The inflation reduction act comes to mind. So does the affordable care act.
Who would ever want to be the next President (besides someone who wants to grift their position to make their family rich with donations and fake corporate board positions and consulting gigs for which they have no qualifications). The economy is now in a prolonged and far over-stretched delay toward a reckoning. The debt that keeps getting kicked down the road (and massively added to by more than just the interest) is basically suicidal. The types of hard decisions to be made where you basically have to tell everyone it’s time to suck it up because the sacrifices will cut deep are not going to go over well.
What are the odds on the over for a $3.5 trillion budget deficit next year? 4:5?
If the 2024 presidential victor is a Republican, the public will be told it is his/her fault.
If the 2024 presidential victor is a demonrat, the public will be told that it was the fault of the 2023 congress.
Atlas Shrugged was supposed to be a novel, not an instruction manual.
If the economy is growing then DC can spend more, if it is shrinking then it makes it harder to spend more. Not that they won’t use the old stimulate the economy ruse so they can continue to spend more. Why do they need to spend more? Votes.
Because the dims like gaslighting. Almost every bill does the exact opposite of the name it has.
The money is fake.
It’s all a stupid charade.
The best solution would be to split the country. Let the Blue states keep the legal status as the United States and the new one will start debt free. It will at least be amusing to see them try to fix the debt by “investing” in gender studies majors and green energy ponzi schemes.
giddy up ....ya boy if the “public”sector had to abide by the rules a regs that they impose ...the streets would be filled with raging angry people every day.
The old ussr had nothing on us ...our 2 tiered system is second to none.
“party” members can do coke lie to the atf and sell influence to the bad guys.
If your in the right group gov $$ just flows like water and life can be goood.Retiree young and get your job back ... as a consultant.
Every gov official should have transparent financials... and be audited every 3 years.
Sometimes I think I should have gone into gov graft ... but my soul just couldn't handle the blackness.
Congress will need to deal with it first. Good luck with that.
“resulting in roughly $3.6 trillion in tax cuts”
There’s No way they can know these numbers. The Laffer Curve demonstrates there is an optimal rate that will be a benefit which legislators should be seeking.
True. There’s also this little pesky thing, well it should be, that limits what legislators should be spending money on. It’s called the U.S. Constitution. Follow that and Laffer basically becomes meaningless at the federal level.
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