By Andrew Ujifusa
Over the last week or so, we’ve highlighted several provisions of the two GOP-backed tax reform proposals in Congress that could specifically impact education. But there’s one question we haven’t really dealt with yet: Would the tax bills lead to funding cuts at the U.S. Department of Education?
As they are currently written, the tax cuts in the House and Senate proposals would be financed with about $1.4 trillion in deficit spending over the next decade. In other words, they’re not “deficit neutral” as that term is traditionally understood, and would add to the national debt, although Republicans argue that this leaves out “dynamic scoring” of the budget, in which tax cuts spur economic growth and ultimately boost tax revenue. However, if those tax cuts become law and they do increase the national debt, it could factor into long-running from Republicans in Congress that the national debt must be reined in. (There’s a separate argument to be had about whether approving tax cuts that add to the debt and then cutting spending to reduce the debt is sound policy, but let’s leave that aside.)
If spending is reined in, that means budget cuts, and the odds are that Republicans would advocate cuts to discretionary spending, the kind that funds the Education Department.