Trump tax cut renewal is winning Wall Street, but could cost US$4.6 tril
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The prospect of renewing expiring portions of Trump's 2017 tax cuts is attracting Wall Street donors, but it could add US$4.6 trillion to the national debt. Independent analyses show that the tax cuts did not pay for themselves in 2017 and will not do so if renewed in 2025. The US government's debt load and interest costs have increased significantly due to the deficit-financed tax cuts, pandemic stimulus, and Biden administration spending. The Congressional Budget Office estimates that extending the tax cuts would cost US$4.6 trillion over the next decade. While some Republicans deny the cost, others propose cutting social programs or increasing tariffs to offset the expense. President Biden's approach is to extend the lower rates for individual taxpayers making less than US$400,000 a year and raise taxes on corporations and the wealthy. Economists largely agree that the claim that tax cuts pay for themselves is misleading. The revenue loss from the tax cuts would only be partially offset by increased investment and growth. The fiscal impact of the tax cuts would be significant, and the level of budget pain needed to offset the revenue loss would be unprecedented. The article presents different viewpoints on the impact and effectiveness of the tax cuts.

#TrumpTaxCuts #WallStreet #NationalDebt #UsGovernmentDebt #TaxPolicy #EconomicImpact

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