by Richard W. Wise, ©2026
Donald Trump is a fighter—a punch drunk fighter who, if you listen to him enough, always telegraphs his punches. Here is one you can't afford to miss:
"We can't take care of daycare. We're a big country. We're fighting wars. It's not possible for us to take care of daycare, Medicaid, Medicare, all these things." Donald Trump
There you have it! This statement, delivered by the president last Wednesday, to a White House organized by invitation luncheon.
The 2025 "One Big Beautiful Bill Act" (OBBBA) signed by President Trump includes over $4.5 trillion in tax breaks, heavily benefiting corporations and the ultra-wealthy, including roughly $1 trillion in tax cuts for the top 1% of earners over a decade.
According to my friends at AI the OBBBA is just more socialism for the rich: Based on 2025 projections, President Trump's "One Big Beautiful Bill Act"—which extends individual income tax cuts from 2017 and introduces new cuts—is projected to increase federal deficits by $2.4 trillion to $3.4 trillion over the next decade (2025–2034), according to nonpartisan Congressional Budget Office.
Payment on the deficit is already the second largest line item in the federal budget—right behind the military. Trump's objective is clear. Boost the deficit and use that as an excuse to cut all social programs including Medicare and Medicaide. Are you listening MAGA? Still think Trump is supporting you? Watch out for that next punch.
What Happens When The National Debt Becomes Unsustainable?
The national debt is complex but anyone who has ever balanced a checkbook knows that sooner or later the arithmetic catch up to you. The U.S. national debt has surpassed 39 trillion, with annual deficits projected to reach projections suggesting it will rise to $63.7 trillion by 2036, driven by mandatory spending and interest. This path is considered unsustainable, with debt-to-GDP projected to reach 120% by 2036 and up to 175% in 30 years.
Under current policy, the United States has about 20 years for corrective action after which no amount of future tax increases or spending cuts could avoid the government defaulting on its debt. This is a scenario suggested by Penn Wharton, our dear leader's alma mater.
Will default happen? Doubtful. It would send the world economy into freefall. Tax increases will be necessary, and they will come and they will likely be coming not to the top 1% (Trump's already cut those) but to the vast unwashed. That's right, to you and me. Trump has already floated the idea of a flat tax on consumption. As I said in a previous post, this is the most regressive of taxes. Why, because it hits the middle and working class the hardest. If you make a million a year and spend half, that would be the amount taxed. The other half—the half invested—is not. The lower your income, the higher the percentage you must spend to survive, the higher percentage of your income you pay in taxes.
This is a tactic that has been used by autocratic regimes from the beginning of time. For example, in France under the kings, the nobility paid no tax. Taxes were paid by the peasants while the aristocracy cavorted and stuffed themselves at Versailles. Where does it lead. As I suggested in my 3/11/25 blog post, That's right, The Serfication of America.
That's right sucker, can't find a house you can afford? Get yourself a mud hut.