In the year 2017, Trump administration opted for a tax cut worth $1.5 trillion via Congress with a primise that this would spark the sustained growth of the U.S. economy. While these tax cuts surely have goosed current U.S. economy, the officials state that it won’t actually be enough in the long run. In short, it won’t enough to provide the required 3 percent growth annually as promised by the president.
According to the forecasters in White House, in order to produce this average rate of growth for the upcoming decade, the economy in America needs to have additional rollbacks, such as the ones in the labor regulations, a new tax cut round, and $1 Trillion plan for infrastructure improvement. Getting to implement all these policies could actually be a difficult scenario given the divided Congress & increasing federal deficit. This could limit the lawmaker’s need to expense money on the latest tax cut or the infrastructure plans.
However, without these additional cuts in place, as predicted by the economic team at White House, the growth would come down to 2 percent per year by 2026. Many of the forecasters have projected that this economic growth is actually an average number and the growth could actually be far lower with circumstances changing rapidly.
