The ‘Significant Risk’ That Republicans Tank the Economy - The Atlantic

Key Concerns: Republican Economic Policies

The article highlights the significant risk posed by the Republican Party's proposed economic policies, particularly the extension of Trump's 2017 tax cuts without sufficient offsetting measures. Experts warn that this could lead to a substantial increase in the national debt, potentially triggering an economic crisis.

Potential Economic Collapse

Analysts express concern that the lack of a plan to cover the $5 trillion price tag of extending the tax cuts could cause an already unstable economy to collapse. The article emphasizes the risk of the Republican plan's impact on global investor confidence, citing the possibility of a sell-off in the bond markets.

Republican Divisions and Proposed Solutions

The article also points out the deep divisions within the Republican Party regarding the best way forward. While some Republicans advocate for spending cuts, they face political challenges in achieving substantial reductions, especially given resistance to cutting popular programs like Medicare, Social Security, and defense spending. Potential solutions discussed include:

• Medicaid cuts: Republicans are considering work requirements and scaling back the ACA expansion, but face internal opposition.
• Repealing Biden's climate plan: Some Republicans aim to eliminate clean energy tax credits, but this measure may face resistance.
• Debt limit increase: The necessity of increasing the debt limit creates a potential point of conflict and negotiation.
• Tax increases on the wealthy: This is a proposed solution that faces fierce opposition from conservatives.
• Lifting SALT cap: Raising the cap on state and local tax deductions would ease the burden on high-tax states but further add to the bill's cost.

The article concludes by emphasizing the dire consequences of the Republican Party's potential failure to act responsibly, potentially leading to a recession as a result of automatic tax increases if the plan collapses.