The Corner

Fiscal Policy

Whoever Wins in 2024 Faces a Fiscal Perfect Storm

My new piece for the print magazine is about the $5 trillion fiscal cliff that’s coming in 2025.

  • The individual provisions of the Tax Cuts and Jobs Act expire.
  • So does the suspension of the income limit on Obamacare subsidies.
  • So does a bunch of contract authority from the bipartisan infrastructure law.
  • So does supplemental state- and local-government funding from the pandemic years.
  • So do the discretionary-spending caps from this year’s debt-ceiling deal.
  • And Congress will need to raise the debt ceiling again.
  • And fund the military, anti-poverty programs, education, transportation, and all the other stuff it normally funds.
  • And entitlements continue on autopilot with both parties promising not to reform them.
  • And interest rates are higher so borrowing is less affordable than it used to be.

It’ll be a fiscal perfect storm, and it’s due to strike in the first year of the next presidential administration. It would be really nice to have a sober, details-oriented, highly competent, fiscally conservative president who can hire sober, details-oriented, highly competent, fiscally conservative advisers and cabinet secretaries to help get the country through this potential disaster.

Dominic Pino is a former economics editor and Thomas L. Rhodes Fellow at National Review and the former host of the American Institute for Economic Research podcast Econception.
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