The Trump administration’s late 2017 tax package seeking, among other measures, tax cuts for US businesses and households, may be a feather in the cap for Republican politicians, but from an economic perspective, we believe the negatives - which include a boost to the fiscal deficit - are likely to outweigh the positives.
The tax package secured Congressional passage despite opposition both from fiscal conservatives troubled by the likely impact on the deficit and from moderates wanting to ensure that middle-income households would benefit from the tax cuts.
