Controversy over long-term tax cut plan in the US

The Republican plan in the U.S. Senate to maintain President Donald Trump's tax cuts for an extended period is raising concerns about a "debt spiral" that could undermine economic growth.

This tax cut policy is set to expire at the end of this year, but leading Republican senators are seeking to extend it through a measure that doesn't require Democratic support. However, according to Reuters, this intention is facing opposition from a segment of hardline lawmakers in both the Republican and Democratic parties. They are skeptical of the tax strategy, arguing that the goal should be to curb the $36 trillion national debt and preserve social security programs that are being targeted for spending cuts.

House Democratic leader Hakeem Jeffries spoke on February 25th, opposing tax cuts.

The tax cuts implemented during Trump's first term in 2017 argued that the revenue losses would be offset by stimulating economic growth. A segment of Republican lawmakers now maintains this view, predicting that economic growth will compensate for the losses incurred by Trump's program, such as eliminating taxes on tips, overtime pay, and Social Security benefits. Furthermore, they argue that the projected increase in debt is inaccurate and advocate for long-term tax cuts, not just temporary extensions.

However, the Committee on Responsible Federal Budget (CRFB) warns that long-term tax cuts risk increasing the budget deficit by up to $46 trillion over the next decade and setting a dangerous precedent for future borrowing.

Source: https://thanhnien.vn/tranh-cai-ve-ke-hoach-giam-thue-lau-dai-tai-my-185250303214855822.htm