The accounting maneuver that could make the cost of extending Trump's tax cuts look like zero
Published On Mar 2, 2025, 10:00 AM
The article discusses a proposed budget maneuver aimed at extending the 2017 Tax Cuts and Jobs Act, potentially allowing its costs to appear as zero on paper. This would facilitate additional tax cuts championed by Donald Trump. However, it also risks increasing national debt by trillions. While some lawmakers support this tactic as a way to alleviate fiscal constraints, fiscal conservative groups are calling it a deceptive budget gimmick that could lead to unsustainable borrowing. The proposal's future may depend on political negotiations within Congress, particularly between different factions with varying concerns over debt and fiscal responsibility.
Stock Forecasts
SPY
Positive
If the proposed budgeting reforms gain traction, it could bolster Trump-aligned firms and sectors benefiting from tax cuts, especially in consumer discretionary and corporate sectors that tend to flourish from lower tax burdens. Expect potential positive momentum for related stocks.
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