Shumita Basu

Let's turn to Congress, as House Republicans race to pass a major tax and spending package before Memorial Day. In doing so, they're preparing to face a basic math problem. The scale and scope of their proposal could increase the deficit by several trillion dollars, just at a time when borrowing costs appear to be climbing and concern over mounting debt rises.

On Friday, Moody's Credit Agency, which monitors a country's capacity to pay back its debts, downgraded the U.S. 's rating from the highest AAA. It blamed, quote, But it also sounded the alarm over this bill.

On Friday, Moody's Credit Agency, which monitors a country's capacity to pay back its debts, downgraded the U.S. 's rating from the highest AAA. It blamed, quote, But it also sounded the alarm over this bill.

On Friday, Moody's Credit Agency, which monitors a country's capacity to pay back its debts, downgraded the U.S. 's rating from the highest AAA. It blamed, quote, But it also sounded the alarm over this bill.

That's Richard Rubin, a tax policy reporter at The Wall Street Journal.

That's Richard Rubin, a tax policy reporter at The Wall Street Journal.

That's Richard Rubin, a tax policy reporter at The Wall Street Journal.

Changing the U.S. credit rating is unlikely to seriously damage the economy. Only 11 countries now hold the top rating. But it's an important signifier. And as Rubin notes, incurring more national debt may lead to more expensive borrowing over time. And it may eventually give future politicians some unpalatable choices. One notable fact from Moody's report, interest payments in the U.S.

Changing the U.S. credit rating is unlikely to seriously damage the economy. Only 11 countries now hold the top rating. But it's an important signifier. And as Rubin notes, incurring more national debt may lead to more expensive borrowing over time. And it may eventually give future politicians some unpalatable choices. One notable fact from Moody's report, interest payments in the U.S.

Changing the U.S. credit rating is unlikely to seriously damage the economy. Only 11 countries now hold the top rating. But it's an important signifier. And as Rubin notes, incurring more national debt may lead to more expensive borrowing over time. And it may eventually give future politicians some unpalatable choices. One notable fact from Moody's report, interest payments in the U.S.

are set to consume 30 percent of the federal government's revenue by 2035, compared with 9 percent in 2021. Still, Republicans are moving forward with this bill. They advanced it out of a key House committee over the weekend, securing the votes of several who had blocked the measure just days before, and they hope to put the bill up for a vote by Thursday.

are set to consume 30 percent of the federal government's revenue by 2035, compared with 9 percent in 2021. Still, Republicans are moving forward with this bill. They advanced it out of a key House committee over the weekend, securing the votes of several who had blocked the measure just days before, and they hope to put the bill up for a vote by Thursday.

are set to consume 30 percent of the federal government's revenue by 2035, compared with 9 percent in 2021. Still, Republicans are moving forward with this bill. They advanced it out of a key House committee over the weekend, securing the votes of several who had blocked the measure just days before, and they hope to put the bill up for a vote by Thursday.

Rubin says Republicans believe that core elements of this legislation, like expanding and extending tax cuts, will help spur economic growth and offset what's added to the deficit.

Rubin says Republicans believe that core elements of this legislation, like expanding and extending tax cuts, will help spur economic growth and offset what's added to the deficit.

Rubin says Republicans believe that core elements of this legislation, like expanding and extending tax cuts, will help spur economic growth and offset what's added to the deficit.

Economists largely agree that the legislation could boost economic growth, but many say not anywhere close to the level Republicans are projecting. One expert at the Libertarian Cato Institute told Rubin, Republicans like to use this argument of economic growth as a, quote, magic wand to wave away problems in legislation.

Economists largely agree that the legislation could boost economic growth, but many say not anywhere close to the level Republicans are projecting. One expert at the Libertarian Cato Institute told Rubin, Republicans like to use this argument of economic growth as a, quote, magic wand to wave away problems in legislation.

Economists largely agree that the legislation could boost economic growth, but many say not anywhere close to the level Republicans are projecting. One expert at the Libertarian Cato Institute told Rubin, Republicans like to use this argument of economic growth as a, quote, magic wand to wave away problems in legislation.

But while there are some self-styled deficit hawks in the congressional ranks, Rubin says they will struggle to balance economic realities with political ones.