Lawmakers from both parties are pushing for a deal on new tax cuts that could help poorer Americans and businesses but could also add new red ink at a time when US national debt is at a record high.
These negotiations are ongoing, according to two sources familiar with the situation, and are set to resume in earnest when Congress returns next week. But they face an uphill climb amid a jam-packed 2024 agenda.
Those discussions could also run headlong into government funding talks that are expected to hinge on deficits and fiscal responsibility. The US government’s debt recently topped $34 trillion for the first time in history.
“Yeah, it feels very disjointed to be worried about debt and deficits but then reduce revenue by a hundred billion dollars or potentially more,” said Erica York of Washington’s Tax Foundation in a recent interview, citing the possible budget impact of a tax deal.
The tax talks, which continued at the staff level…
