Trump Tax Cuts May Fail to Drive Much, If Any, Economic Gain
- Republicans plan to renew tax cuts for households under Trump
- Cuts estimated to cost $4.6 trillion, with few offset plans
Donald Trump at the New York Stock Exchange on Dec. 12.
Photographer: Spencer Platt/Getty ImagesThis article is for subscribers only.
President-elect Donald Trump says renewing tax cuts would turbo-charge investment and boost US economic growth — a pledge that helped propel him to election victory in November.
But new analysis from the Committee for a Responsible Federal Budget (CRFB), a nonpartisan fiscal watchdog group, warns that extending tax cuts set to expire next year could do almost nothing to grow the economy. That’s a jarring data point for Republicans framing the case to renew the costly legislation as a way to boost an economy that many voters say isn’t serving them.