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.
Most of the measures up for renewal largely benefit individuals and households, including lower income tax rates and an expanded child tax credit. While those are an easy sell to voters, economists caution on the scale of economic dividend they generate. The bigger spur for investment, they say, would be cuts for corporations.
The business tax breaks in the 2017 law Trump signed in his first term aren’t up for renewal.
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.
Most of the measures up for renewal largely benefit individuals and households, including lower income tax rates and an expanded child tax credit. While those are an easy sell to voters, economists caution on the scale of economic dividend they generate. The bigger spur for investment, they say, would be cuts for corporations.
The business tax breaks in the 2017 law Trump signed in his first term aren’t up for renewal.
13 days ago
