Trump lauds tax reform as budget office worries over long term cost

Global Business

Donald Trump has been on his latest tax roadshow. The U.S. president is lauding the historic cuts he made.

But there’s growing concern about how much all this will cost in the long run.

CGTN’s Owen Fairclough reports.

Florida is one of the most lightly taxed states in the U.S —now even lighter after Donald Trump’s landmark tax reform.

He told a roundtable discussion at his latest tax roadshow: “You see what’s happening to your wallet. You’re getting a lot more money in your weekly or monthly checks than you ever thought possible.”

While it may feel good to wage earners, the ultimate cost of lowering tax revenues remains a concern for the U.S. government budget office.

It forecasts government debt as a percentage of GDP rising to nearly 100 percent by 2028 because there are less tax revenues.

By some estimates it’s already beyond that.

Countries saddled with debts like that have gone bankrupt in the past – Greece and Portugal, for example.

But Trump claims stronger growth will pay for the tax cuts and yet the budget office says growth will slow after next year.

Even so, Trump’s lowering of corporate tax rates has persuaded multinationals such as Apple – which stashed billions overseas to avoid high taxes – to bring some of that money home.

“Now [corporate taxes]are not the lowest,” Trump said. “But they’re on the low sides. Businesses are pouring back into the US and that means jobs.”

The question now is whether voters remember the effect of Trump’s tax cuts on their wallets when his scandal-plagued administration is put to the test during Congressional elections later this year?