According to Deep Tide TechFlow, on December 13, a report from Jinshi revealed that the latest analysis by the nonpartisan fiscal oversight organization 'Committee for a Responsible Federal Budget' (CRFB) shows that the extension of tax cuts proposed by Trump has limited impact on economic growth. According to the Congressional Budget Office (CBO) assessment, if tax cuts expire, they will reduce the fiscal deficit by $3.7 trillion over the next 10 years. Although models from the Tax Foundation and the Wharton School indicate that extending tax cuts may bring slight economic growth, the benefits are far from covering the costs.
The Trump campaign team proposed three major countermeasures: reducing the corporate tax rate to 15%, imposing a 10%-20% tariff on imported goods, and establishing a 'Department of Government Efficiency' to cut spending. Nomura's Chief Economist David Seif warned that the current fiscal outlook is continuously deteriorating, and there is limited room for further tax cuts. Eurizon SLJ Capital CEO Stephen Jen emphasized that cutting spending and streamlining government will be key tasks for Trump's potential second term, as simple tax cuts are unlikely to achieve economic growth targets.
