Republicans in the Senate: Fight for Trump's risky tax law!
Republicans in the Senate: Fight for Trump's risky tax law!
In the USA, Republicans wrestle in the congress for the future of President Donald Trump's ambitious tax and expenditure law, which is to be passed by July 4. This reform is part of Trump's agenda for a possible second term. The House of Representatives has already approved a template in Trump's sense, but in the US Senate there are hesitant votes from their own party that could block the law unless there is sufficiently responding to their deficit worries. The Republican majority leader John Thune expressed himself skeptical and emphasized: "Never until we vote." Trump's plan provides to permanently extend tax relief from his first term and at the same time provide additional funds for the military and border protection. However, critics in Trump's party saw a danger to the state finances, since independent budget experts appreciate that the project could increase the US debt by $ 3.3 trillion. The current public debt of the United States is already 120 percent of the BIP, and the congress household office for the congress is predicted that the new tax law could increase the state deficit by around $ 3.8 trillion within a decade.criticism and resistance within the party
In the Senate, there are concerns of Senator Rand Paul, who sees the long -term financial effects of the law skepticism. Trump tries to convince the hesitant Republicans and threatens to have apostates with the support of their rivals. "Democrats reject the law because it favors the rich and drastically shortens the rich," reported the In addition, Elon Musk sharply criticized the law on social media. He even threatened to establish a new party, the "America Party", if no significant spending cuts were realized. Musk described the Situation as an expression of a "unit party" between Republicans and Democrats, which creates additional tensions within the political landscape.economic considerations for public debt
Another aspect that shapes the discussion about Trump's legislation is increasing public debt in the United States. Forecasts indicate that the total debt could increase to over $ 35 trillion by the end of 2024. In 2054, the ratio of debt and GDP could even grow to 172%. This development is further exacerbated by the COVID 19 pandemic, which caused the budget deficit in 2020 to $ 3.3 trillion.
CBO forecasts show that a balanced economic policy and long-term strategies are necessary to reduce deficits in order to manage the debt sustainably. Economists warn that Trump's plan may not generate sufficient growth to reduce the associated deficits. In particular, Ernie Tedeschi from Yale University emphasized that the deficit would have to be reduced by ten trillion dollars in the next ten years to keep the debts stable.
The discussion about Trump's tax and expenditure law raises many questions, both with regard to political enforceability and the long-term economic consequences for the USA. More than ever, the challenges seem complex and require both courage and foresight.
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