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 the Thomas L. Rhodes Fellow at National Review Institute.
Exit mobile version