9 June 2025 | Dollar

WSJ: Trump's tax reform supporters underestimate potential increase in US budget deficit

WSJ: Trump's tax reform supporters underestimate potential increase in US budget deficit

Debates over Donald Trump's tax reforms continue to rage, with Republicans trying to push the bill through the Senate after it was approved by the House of Representatives. The US Congress is expected to announce its decision by July 4, according to The Wall Street Journal (WSJ).

The position of Trump's supporters conflicts with the forecasts of independent analysts, the WSJ reports. Many Republicans consider the president's tax reforms crucial for rapid US economic growth, while others are deeply concerned about a potential increase in the country's budget deficit. According to the nonpartisan Congressional Budget Office, it could rise as much as $2.4 trillion by 2034.

Seeking to secure congressional support, the White House is stressing the positive impact of the tax bill. However, the risks of exacerbating the US financial burden have led even some of Trump's allies to reconsider their positions. For instance, Elon Musk, previously a supporter of the administration's policies, has criticized the proposed reforms as "wasteful."

Anton Volkov MarketCheese
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