特朗普上任第一天预测将非常忙碌，他承诺的多个政策正在等待验证，但市场怀疑他能否签完那么多的行政命令。Source: Caixin.
Author: Malan.
①Trump has not yet taken office, but has already promised many bold reforms, including a large-scale tax reduction plan; ②Republicans are formulating a hundred-day agenda, focusing on extending a $4 trillion tax reduction plan, lowering corporate tax rates, and eliminating consumption taxes, etc. ③Tax reduction policies may increase the pressure on the US fiscal deficit, but Republicans believe that tax cuts can promote economic growth, thereby reducing deficit pressure.
On Trump's first day in office, it is predicted to be very busy. Several policies he has promised are awaiting verification, but the market doubts whether he can sign so many executive orders.
This means that the majority of policies will undergo dual tests of time and policy space, and some promises may even come to nothing. But Republicans revealed that tax cuts would definitely not just be verbal commitments for Trump.
It is reported that Trump is working with Republican lawmakers to develop an ambitious hundred-day agenda, the most important of which is extending the approximately $4 trillion tax reduction plan proposed in Trump's first term. In addition, Trump also hopes to reduce the corporate tax rate from the current 21% to 15%, and eliminate personal taxes on tips and overtime pay.
House Majority Leader Steve Scalise has recently been discussing the hundred-day agenda with Republican colleagues, emphasizing the hope to be fully prepared for everything on the first day of the new government taking office.
Mixed reviews.
Large-scale tax cuts mean that the United States will feel greater pressure from deficits. Some Republicans believe that tax-cut policies can typically offset costs through the potential economic growth, and Trump's other major policy, tariffs, can also provide some fiscal revenue.
Others point out that the new Congress is considering cutting expenses, such as Biden administration's initiatives related to food vouchers and medical care subsidies, which have always been plans that conservative Republicans want to overturn.
Incoming Senate Finance Committee Chairman, Republican Mike Crapo, stated that criticizing tax cuts for increasing deficits is very absurd, as taxation and spending are two different concepts that Americans must clarify.
Avik Roy, Chairman of the Foundation for Research on Equal Opportunity, also stated that Trump's tax cut policy does not only benefit millionaires; all taxpayers along the income gradient can see the benefits. In contrast, the Federal Reserve's low interest rates provide cheap loans for wealth accumulation, including for the rich.
These statements refute the claim that Trump's tax cuts worsen income inequality, but they have not completely dispelled Americans' concerns about tax cuts. According to the Congressional Budget Office, continuing tax cuts could increase the United States' deficit by about $4 trillion over the next decade.
Democrats have also threatened that given the Republicans' slim majority only in the House, the idea of Republicans and Trump passing large-scale and far-right policies seems very naive.
Despite many complaints and skepticism, Republicans remain very proactive. Speaker of the House Mike Johnson has promised to advance this 100-day agenda at a very fast pace within the first 100 days of taking office, emphasizing that the new Congress has many issues to address.
Editor/Rocky
