Debate Rages Over Trump’s Tax and Spending Policies' Impact on Economy and Deficit

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Source: Barron's
Debate Rages Over Trump’s Tax and Spending Policies' Impact on Economy and Deficit
Photo: Barron's
TL;DR Summary

Senate Republicans are close to passing a large tax and spending bill that extends many of Trump's previous tax cuts and increases spending in certain areas. However, experts like Citi's Nathan Sheets believe the bill will have minimal impact on the already large US deficit and won't significantly boost economic growth, which is more likely to be influenced by deregulation and trade policies. The bill's effect on the deficit is expected to be negligible, with the overall fiscal picture remaining large regardless.

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