Economic news

Trump suggests US tax restructuring, while worries over deficit grow

U.S. President Donald Trump on Thursday made public his intent to restructure tax system, which could be the biggest in 30 years, aiming to reduce taxes for the majority of Americans, though drawing criticism over benefiting the rich and potential risk of increasing deficit by trillions.

Senator Bob Corker answered with skepticism that he’s not going to vote for any kind of bill that could drive up the deficit.

Donald Trump stated that his idea is to aid working people, create jobs and simplify the tax code, as well as make it fairer.

However, his initiative is not much welcome in the U.S. Congress, the Republican Party being split over the issue and the Democrats up in arms.

This reform would bring down income tax rates for certain groups, Americans with high earnings would get the top income tax rate lowered, certain tax breaks would be closed, one of those supporting people in Democratic high-tax states.

It took several months of negotiations to hammer out a plan, but it covers few details on the ways to compensate for the reduced taxes without adding up to the budget deficit and enlarging the national debt of $20 trillion further.


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