America's debt is out of control, it's time to increase taxes
Trump's Tax Cuts
Although many people praise President Trump's tax cuts, these tax cuts were bad for the economy overall. This is because the policy involved reducing taxes while the economy was already on an upswing. This meant that unless the Federal Reserve increased interest rates, the economy would be susceptible to inflation since Americans usually buy more goods and services when taxes are cut, causing the prices of goods and services to increase. This tax plan was a good political move because now during the next election President Trump can say that he cut taxes, but the tax cuts were harmful for America's economy in the long term.
America should increase taxes
Instead of cutting taxes, America should be increasing taxes. Right now America is in a phase of the business cycle where the economy is on the rise. Since the economy is on the rise all policies that could increase demand for goods and services should not be considered. Instead, the government should take advantage of being in this phase of the business cycle by increasing taxes. Sooner or later the United States is going to need to find ways to pay down their debt, so why not pay down the debt now while lowering the chance of rapid inflation happening in the economy by increasing taxes?
The US' debt is currently over $21 trillion. While much of the debt is owed to the American public, Social Security, and other trust funds and government agencies, the amount of America's debt is greater than what America produces in a year. Having such a high debt-to-gross domestic product ratio is problematic and should be a warning sign to American politicians that they need to do something about America's debt. Increasing taxes is a start to addressing America's debt problem, but due to politicians using tax cuts as a way to get votes, increasing taxes may not happen anytime soon.
Republicans Say that America Shouldn't Increase Taxes because Big Government is Dangerous
Republican politicians in particular seem to strongly oppose increases in taxes because they and their voters think that increasing taxes makes government bigger. However, increasing taxes and using the proceeds to pay for government activities that would have otherwise been payed for by borrowing money does not make the government bigger. What the government should really be doing is decreasing spending while increasing taxes. As far as American politics go, Democrats usually don't mind increasing taxes and Republicans support pruning wasteful government programs. These two aspects of America's most popular parties should be combined to address America's debt problem.