Tax cut renewals may not spur the economic growth proponents expect

Politics and Government Politics and Government

Mon, December 16, 2024

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Tax cut renewals may not spur the economic growth proponents expect - report

^{Published on 2024-12-15 17:20:49 - MSN}

Renewing tax cuts implemented in President Trump's 2017 signature tax reform package may not produce the economic stimulus its proponents are hoping for, according to a report from the nonpartisan Committee for a Responsible Federal Budget.

The article from MSN discusses a report by the Congressional Budget Office (CBO) which suggests that renewing the tax cuts from the Tax Cuts and Jobs Act of 2017 might not lead to the significant economic growth that its proponents anticipate. The CBO analysis indicates that while extending these tax cuts would increase the federal deficit, the economic growth spurred by these cuts would be less than previously estimated. This is due to several factors including the already high levels of national debt, which could lead to higher interest rates, and the diminishing returns on tax cuts as the economy approaches full employment. The report also highlights that the benefits of these tax cuts are unevenly distributed, with wealthier individuals and corporations gaining more, potentially leading to less consumer spending and thus less economic stimulus. This analysis challenges the assumptions of trickle-down economics and suggests that alternative fiscal policies might be more effective in promoting sustainable economic growth.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/politics/government/tax-cut-renewals-may-not-spur-the-economic-growth-proponents-expect-report/ar-AA1vUwsg ]

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