Viewpoint: Trump's tax cut policy may not be able to drive economic growth in the United States

ChainCatcher news, according to Jinshi reports, a nonpartisan fiscal oversight organization, the "Committee for a Responsible Federal Budget" (CRFB), warns in its latest analysis that extending the tax cuts set to expire next year will have almost no benefit for economic growth.

The CRFB's findings are based on an assessment by the Congressional Budget Office (CBO), which found that allowing the tax cuts to expire would significantly increase public revenue, reducing the cumulative fiscal deficit by $3.7 trillion over ten years. This potential revenue growth would mean less public borrowing, which in turn would stimulate private investment.

In the CBO's analysis, this would help offset the reduction in the labor force caused by the expiration of the tax cuts. The CBO stated, "Overall, these two effects largely offset each other, resulting in very little change in Gross Domestic Product (GDP)."

This means that, in the view of the CRFB, extending the tax cuts would also have a similar, modest net effect on economic growth.