According to ChainCatcher news and reports from Jinshi, the latest analysis from the nonpartisan financial oversight organization, the Committee for a Responsible Federal Budget (CRFB), warns that extending the tax cuts set to expire next year will provide almost no help to economic growth.
The CRFB's findings are based on an assessment by the Congressional Budget Office, which found that allowing tax cuts to expire would significantly increase public revenue, reducing the cumulative budget deficit by $3.7 trillion over ten years. These potential revenue increases would mean less public borrowing, thereby stimulating private investment.
In the analysis by the Congressional Budget Office, this will help offset the reduction in the workforce caused by the expiration of tax cuts. The Congressional Budget Office stated: 'Overall, these two effects largely offset each other, resulting in very little change in Gross Domestic Product (GDP).'
This means, in the view of the CRFB, that extending the tax cuts would also have a similar, modest net impact on economic growth.
