Economists Blame $40 Trillion Debt Milestone on Two Things: GOP Ineptitude and Tax Cuts for the Rich

Congressional Republicans have seized upon news that the US national debt reached $40 trillion to bash what they described as "unaffordable socialist policies" and out-of-control spending.

But economists and policy analysts say Republican policy decisions—from massive tax cuts for the rich to disastrous wars of choice in the Middle East—are primarily responsible for the explosion of the national debt over the past quarter-century. President Donald Trump, who has repeatedly promised to eliminate the national debt, has so far overseen an $11.6 trillion debt surge across his two White House terms.

"I have never been a deficit hawk, and I’m not about to change my religious affiliation now," Dean Baker, senior economist at the Center for Economic and Policy Research, wrote Thursday. "But whatever we think of debt and deficits, there is one point that should be very clear: It has been run up almost entirely due to Republican tax cuts and their inept management of the economy."

Economist Paul Krugman similarly wrote that while the $40 trillion figure "has no special significance," it underscores "the incredible irresponsibility of the Trump administration, with its unfunded tax cuts that overwhelmingly benefit the wealthy, billions in wasteful military spending—redesigning aircraft carriers because Trump doesn’t like the way they look!—and more."

"As Jared Bernstein and Bobby Kogan have shown, our deficit would be far more manageable if first [George W.] Bush, then Trump, hadn’t rammed through tax cuts that hugely favored high-income Americans," Krugman added.

Kogan, senior director of federal budget policy at the Center for American Progress, estimated in 2023 that tax cuts enacted during the Bush administration and Trump's first term were "responsible for 57% of the increase in the debt ratio since 2001, and more than 90% of the increase in the debt ratio if the one-time costs of bills responding to Covid-19 and the Great Recession are excluded."

Last summer, Trump signed into law another massive tax cut package that will disproportionately benefit the rich and large corporations—and add trillions of dollars more to the national debt over the next decade.

"From now on, whenever you hear someone fret about how huge, horrible, and out-of-control the national debt is, explain to them that it’s largely because of tax cuts to the wealthy—who are also the major recipients of interest on that debt," former US Labor Secretary Robert Reich wrote on Thursday.

The US national debt reached $40 trillion months earlier than forecasters expected, partially due to lost federal revenue from Trump's court-invalidated tariffs.

"Before his second term is even over, Donald Trump is responsible for more than $10 trillion of this," Rep. Chris Deluzio (D-Pa.) wrote on Thursday. "Just INTEREST on this debt is now sucking up more of our public money than even the military and Medicare. DC Republicans are leaving our kids a colossal mess to clean up."