Did the 2017 tax cuts contribute to rising US deficits?

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The 2017 Tax Cuts Contributed to Rising US Deficits

The US budget deficit is projected to surpass US$1 trillion this year and persist above this threshold for the next decade, with government debt escalating significantly. This rise is partly attributable to the 2017 tax cut package, which has been identified as a key factor in the increasing budget gap. The Congressional Budget Office (CBO) has indicated that recent legislation, including the tax cuts, has contributed to higher deficits.
Impact of the 2017 Tax Law on Debt

The Republican tax law enacted in 2017 is estimated to have created a substantial fiscal hole, with Kentucky Congressman John Yarmuth stating it resulted in a US$1.9 trillion increase in debt. This legislation is seen as exacerbating the nation's long-term fiscal challenges. The budget gap has been on an upward trajectory since the end of 2017, following the implementation of this tax package.
Policymakers' Choices and Borrowing

A significant portion of the current deficit is a direct result of policy decisions to finance recent tax cuts and spending increases through borrowing. Maya MacGuineas of the Committee for a Responsible Federal Budget highlighted that over half of the deficit stems from these choices, leaving future generations with a considerable financial burden. This underscores a pattern of increased borrowing to fund fiscal expansions.
Projected Deficit and Debt Levels

The CBO's forecasts indicate that the budget deficit, which was just under US$1 trillion last year, is expected to average US$1.3 trillion annually from 2021 through 2030. Consequently, US debt is projected to reach 98% of the Gross Domestic Product (GDP) by 2030, marking the highest proportion since 1946. This trend is anticipated to continue, with debt potentially reaching 180% of GDP by 2050.
Acknowledged Need for Spending Control

While Treasury Secretary Steven Mnuchin has maintained that the 2017 tax cuts will ultimately pay for themselves, he has also acknowledged the necessity of slowing government spending growth. He stated that the current rate of spending increases cannot be sustained given the rising deficits, implying a need for fiscal consolidation to manage the budget gap effectively.

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Did the 2017 tax cuts contribute to rising US deficits?

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