Tag Archives: Trump tax plans

The rise in the US deficit may sap support for Trump’s ambitious plans to cut taxes.US fiscal year 2017, which ended on September 30, did not end on a high note. The deficit rose to 3.5% of GDP, edging up 0.3 percentage point from fiscal year 2016. This deterioration stands in stark contrast to the overall improvement in the US economy. GDP growth remains above potential, and unemployment has been on a downward trend throughout the year.What is particularly puzzling, if not worrying, is the...

The Senate budget resolution this week was a positive step, but we remain cautious about the scope of any tax cuts eventually enacted.The US Senate this week approved a budget resolution, which effectively allows it to side-step Democrats’ opposition to start formulating tax cuts. The bottom line is that the Senate vote increases the odds of some tax cuts actually happening, but we think that the road to the finish line will be bumpy and that any tax cuts, if enacted, could be modest. There...