Boost for Growth Or Path to Unprecedented Debt?
President Trump's tax plan could reduce federal revenue by $5 trillion to $11.2 trillion over the next decade, according to estimates from the Committee for a Responsible Federal Budget. This plan would effectively increase the nation's debt by eliminating current or anticipated revenue sources and includes extending tax cuts from the 2017 Tax Cuts and Jobs Act. Critics warn that there are severe fiscal consequences, particularly in regard to rising the national debt.
- The potential economic growth sparked by Trump's tax plans could be offset by increased inflation and reduced government revenue in other areas, such as healthcare and education.
- How will policymakers balance the competing demands of stimulating economic growth with ensuring the long-term solvency of the US debt?