Controversy over long-term tax cut plan in the US

A plan by US Senate Republicans to keep President Donald Trump's tax cuts in place for the long term is raising concerns about a "debt spiral" that could undermine economic growth.

The tax cuts expire at the end of the year, but leading Republican senators are pushing to make them permanent through a measure that does not require Democratic support. However, according to Reuters, the plan is facing opposition from hard-line Republicans and Democrats who are skeptical of the tax strategy, arguing that the goal should be to rein in the $36 trillion national debt and preserve social security programs that are being targeted for spending cuts.

US House Democratic Leader Hakeem Jeffries spoke on February 25 against tax cuts

The tax cuts that Trump introduced in 2017, which were part of his first term, were supposed to offset the revenue losses by stimulating economic growth. A group of Republicans now hold this view, predicting that economic growth will offset the revenue losses from Trump’s agenda, such as eliminating taxes on tips, overtime, and Social Security benefits. They also argue that the debt projections are wrong, so they want the tax cuts to be permanent, not just temporary.

However, the Committee for a Responsible Federal Budget (CRFB) warned that permanent tax cuts risk adding up to $46 trillion to the budget deficit over the next decade and set a dangerous precedent for future borrowing.

Source: https://thanhnien.vn/tranh-cai-ve-ke-hoach-giam-thue-lau-dai-tai-my-185250303214855822.htm