Opinion: Trump's tax cut policy may not stimulate US economic growth
According to Jinshi News, the latest analysis by the non-partisan fiscal watchdog "Committee for a Responsible Federal Budget" (CRFB) warns that extending tax cuts set to expire next year will provide almost no help to economic growth.
The CRFB's findings are based on an assessment from the Congressional Budget Office (CBO), which found that allowing tax cuts to expire would significantly increase public finance revenue and reduce cumulative fiscal deficits by $3.7 trillion over ten years. This potential revenue growth would mean less public borrowing, thereby stimulating private investment.
In the CBO's analysis, this would help offset a reduction in labor caused by the expiration of tax cut policies. The CBO stated: Overall, these two effects largely cancel each other out, resulting in very small changes in Gross Domestic Product (GDP).
This means that, in CRFB's view, extending tax cut policies would also have a similar mild net impact on economic growth.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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