debtball

Donald Trump recently unveiled his tax plan to the world and just like Jeb Bush’s plan it would lower federal taxes for many Americans (if not eliminate them completely).

While either of these plans would be in the financial best interests of me, myself and I (along with millions of other Americans), they would be disastrous at reducing the deficit.

Why? Because neither Bush nor Trump go into detail how they are going to reduce federal spending (which is critical if you want to protect the future value of the dollar).

Courtesy of National Priorities, here is the Federal Budget for 2015:

totalfedspending

Social Security, Medicare as well as the Military are America’s biggest burdens upon the budget and (not surprisingly) are often left along by politicians lest they be voted out by the elderly and “patriotic” (as cutting military spending for any reason is often seen as “un-American”).

Unfortunately for citizens of the United States the expense of all three will most likely increase in the foreseeable future due to people living longer, semi-healthier lives and America facing greater threats from terrorism as well as hostile regional powers abroad.

What American needs is not just tax cuts but also serious spending cuts lest we end up on the path traveled by Iceland as well as Greece (as America’s deficit is over $18 Trillion!).

Unless Donald Trump and Jeb Bush tax plans will magically result in immediate ginormous economic growth (well over 6%) to offset the decreased government revenues then both plans will increase–not decrease–the gigantic deficit that threatens America’s tomorrow.

While I will always welcome a tax cut (as that means more money for me) I do wonder if any politician will propose a serious solution that involves easing the burdens of today without bankrupting the promises of tomorrow.

Image Credits: The Top Five Percent, National Priorities