Because of this fact and because it is never smart, from a national security standpoint, to add more debt, many people feel that cutting taxes was a bad move. Many people believe that, from here, are debt is just going to grow and hurt our economy in the process.
In fact, estimates point to the United States reaching a fiscal year deficit of over $1 trillion. Plus, as interest rates rise and the appeal of bonds lessens, this is only going to worsen the problem.
So, if raising taxes isn’t the answer, what is? Some people think, instead of tax reforms, there should be an opportunity for Americans to dip into the money they have in retirement accounts. Many believe that the real answer lies in allowing people to withdraw some of their retirement money without paying the full tax rate. If they then use that money to invest in real estate, this would boost tax revenue.
The above idea is not a bad one, and it is worth considering. Unfortunately, though, it’s a bit late in the game to resurrect this tax year. However, the suggestion could come in handy in the future.
Of course, this is just one proposed solution to a very real problem. It might work if implemented, but the real issue is that, in the eyes of many, tax cuts have created financial problems for the United States, and those problems need to be remedied soon.