In Louisiana and across the country, good tax policy can improve the wellbeing of hardworking individuals, families and small businesses.
That’s why we were pleased to see the tax provisions in One Big Beautiful Bill signed into law by President Donald Trump. This was a big win – averting a $4 trillion tax hike on families and businesses while permanently locking in tax changes that will create hundreds of thousands of good-paying jobs.
More specifically, the bill prevents a $2,100 tax increase for the average Louisianan.
The new law also makes investments in the United States more attractive by removing tax penalties against buying capital goods, like machinery and farm equipment, as well as research and development. This will help American companies win the race against China and other geopolitical foes for technological advancement in artificial intelligence, quantum computing, and biopharmaceuticals.
But taxes are only part of the story. Our nation is facing a mounting debt crisis that must be addressed. The national debt now exceeds $37 trillion, which amounts to more than $323,000 per taxpayer. The federal government now pays more than a trillion dollars annually just on interest payments on this massive debt – that’s more than we spend on national security.
Government spending has been out of control for a long time – but, especially at the federal level, things have gotten much worse since the pandemic. With the exception of the financial crisis of 2008–09 and the pandemic, federal spending as a percentage of GDP is the highest it’s been since 1946.
Congress needs to get a handle on spending, and fast. Our superb Louisiana delegation, led by Speaker Mike Johnson, is in an ideal position to lead this effort. Of course, they’ve already taken a relatively small, but important, step by passing a $9 billion cut to foreign aid programs and public broadcasting. But there’s much more work to be done.
A great start would be the adoption of a balanced federal budget – something we haven’t seen in a quarter century. President Donald Trump has repeatedly stated that he would like to balance the budget, and Speaker Johnson has, throughout his career, spoken of the moral and constitutional responsibility to bring the federal budget to balance.
Now is the time to set things in motion. As Congress returns from its August break, it should start to develop a second, even more beautiful bill (maybe not so big this time), focused on tackling our nation’s debt crisis. This would help reduce the massive financial burden we are placing on our kids, grandchildren and beyond, and would also provide immediate economic benefits.
While Jerome Powell and the Federal Reserve have been the target of considerable controversy of late in their approach to interest rates, the Fed isn’t the only game in town. By cutting spending, the federal government would borrow less money. That’s an even better pathway to lower rates – something that would benefit prospective homebuyers, entrepreneurs looking to start a small business, and folks carrying credit card debt during these challenging times. No matter what actions the Fed takes, Congress and President Trump need to do their part by reining in spending.
Government spending has spiraled out of control at nearly every level. It’s time to fix it, here at home and in Washington, D.C. The One Big Beautiful Bill will help fuel stronger economic growth, but it isn’t nearly enough to fix the mess caused by decades of overspending and fiscal irresponsibility. President Trump and Congress need to roll up their sleeves and start cutting spending in a big way.
