A plan by US Senate Republicans to keep President Donald Trump's tax cuts in place for the long term is raising concerns about a "debt spiral" that could undermine economic growth.
The tax cuts expire at the end of the year, but top Republican senators are pushing to make them permanent through a measure that would not require Democratic support. But the effort is facing opposition from hard-line Republicans and Democrats, who are skeptical of the tax strategy, arguing that the goal should be to rein in the $36 trillion national debt and preserve social programs that are being targeted for spending cuts, Reuters reported.
House Democratic Leader Hakeem Jeffries speaks on February 25 against tax cuts
Trump’s first-term tax cuts in 2017 were supposed to offset the revenue losses by stimulating economic growth. A segment of Republicans now hold that view, predicting that economic growth will offset the revenue losses from Trump’s agenda, such as eliminating taxes on tips, overtime and Social Security benefits. They also argue that the forecast for rising debt is incorrect, so they want the tax cuts to be permanent, not just temporary.
However, the Committee for a Responsible Federal Budget (CRFB) warned that permanent tax cuts would mean the budget deficit would increase by as much as $46 trillion over the next decade and set a dangerous precedent for future borrowing.
Source: https://thanhnien.vn/tranh-cai-ve-ke-hoach-giam-thue-lau-dai-tai-my-185250303214855822.htm
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