We need a US debt conversation — will the Republicans have one?

Borrowing heavily to finance tax cuts for the wealthy leaves us less prepared for emergencies when they come
 

When the US national debt crossed $40tn in August, I knew exactly what Republicans would say: America spends too much money. 

Spending does matter and, as the top Democrat on the House Budget Committee, I am very conscious of how taxpayer dollars are spent and where this can be done better. However, my Republican colleagues who say that we got to $40tn because of spending alone are ignoring half the story. 

Over the past 25 years, major tax cuts, primarily benefiting the wealthy and large corporations, have reduced federal revenues by trillions of dollars. 

One analysis using data from the Congressional Budget Office (CBO) and Joint Committee on Taxation found that President George W Bush’s tax cuts, their extensions and Donald Trump’s 2017 tax law added roughly $10tn to the debt through 2023. Any honest account should acknowledge that Democrats also voted to make the Bush tax cuts permanent. 

But over the past 10 years, President Trump and Republicans have gone even further. The Tax Cuts and Jobs Act, passed in 2017, added nearly $2tn to the debt, according to the CBO. At the time Republicans promised that faster economic growth would make up for the lost revenue. It did not come close. 

Then last year, Trump and Republicans passed the One Big Beautiful Bill Act. That legislation, according to the CBO, will add a staggering $4.7tn to the deficit over the next decade, making it one of the most expensive pieces of legislation in US history. 

Tax cuts are not the sole reason for the debt. The government borrowed heavily to pay for wars in Iraq and Afghanistan. During the Great Recession and the Covid-19 pandemic, we spent a tremendous amount to keep the economy afloat and prevent economic devastation.

Those situations also show why America’s fiscal health matters. In times of emergency, the nation needs the capacity to borrow. Piling up structural debt during normal times, such as by borrowing heavily to finance tax cuts for the wealthy, leaves us less prepared for emergencies when they come. 

Another factor that has added to the debt, but is often left out of the story, is taxes that are owed but never collected. 

The Internal Revenue Service estimates that nearly $700bn in federal taxes owed for 2022 were not paid on time, and roughly $600bn of this will never be collected. Not all of that is fraud, but the scale of not complying with the tax code is enormous. 

Nevertheless, Republicans repeatedly cut IRS enforcement funding. That has had a serious impact. A report from the Treasury Inspector General for Tax Administration published in August showed that IRS audits brought in 35 per cent less in revenue in fiscal year 2025 than in the previous year. That sharp decrease has come after Trump, supported by Republicans, cut the number of IRS staff dedicated to audits by roughly 30 per cent. 

The negative impact of our deteriorating fiscal health can no longer be ignored, as it has been by many on both sides of the aisle. The national debt is now so large that annual net interest costs are projected to be higher than $2tn. Every dollar that goes towards servicing the debt is money we cannot use on healthcare, infrastructure or education. 

So, what do we do about it without asking working families to make sacrifices?  

First, large tax giveaways, especially to the wealthy, should not be permanent. They should face periodic non-partisan reviews on their impact and whether economic growth has covered the cost of the tax break. In addition, Congress should be forced to vote to renew them on an annual or biennial basis. Congress, rightfully so, carefully examines spending line by line. The same should be done for tax cuts.

Second, my Republican colleagues must get serious about tax enforcement. If they are truly serious about “waste, fraud and abuse” and tackling the deficit, they should join Democrats to give the IRS the resources to audit wealthy tax cheats and large corporations. 

The debt is $40tn and rising — quickly. Republicans have proved to be hypocrites on the issue. But that does not make the debt problem any less real.  

If they want a serious debate about how we got here and how we fix it, I am ready to have one. We need an honest discussion, followed by a credible plan, before it’s too late.