US tax cuts extension could significantly increase national debt — Bloomberg

According to one official estimate, the massive tax cuts in the United States planned by the Republicans will cost the country $3.8 trillion over the next ten years. However, the calculations of independent agencies suggest larger sums, Bloomberg reports.

The US government debt has already been a source of concern for investors. The new President's administration reforms may heighten their fears. By 2035, the debt burden of the world's largest economy may exceed 118% of GDP. Such a surge may weaken confidence in American securities, according to Bloomberg.

On the contrary, the Republicans believe that modernizing the US tax system, along with import tariffs, will boost the country's economy by bringing trillions of dollars of additional revenue into the federal coffers.

However, the centrists' analysis shows that extending tax cuts in the US for a full decade would cumulatively increase the budget deficit to $5.2 trillion.