Trump's new tax cuts could take a shower with cash for the time being

The strategy is an old one for the Republicans: taxes taxes for a few years and avoid the need to take their costs into account in the long term, and bet that the reductions become so popular that the congress will be correct later to continue them.

The tax invoice that the Republicans are now putting together on the Capitol Hill brings the gambit to a whole new level.

Almost all new tax cuts that the Republicans have included in the legislative template that could develop in the coming weeks will only last until the end of 2028, only a few days before President Trump. This includes an increase in the tax credit of 500 US dollars and a bonus of $ 1,000 for the standard deduction and the commitments of Mr. Trump to control no taxes or overtime payments.

The effect would be to shower many Americans with hundreds of dollars a year, starting when they submit taxes next year, a windfall that would dry out if Mr. Trump leaves the office. Even babies were able to redeem with children who were born during the term of Mr. Trump -but not before January 1, 2025 or after December 31, 2028, each of which was given a deposit of 1,000 US dollars for new “Maga accounts” that were created as part of the invoice.

For a president who put his name on the incentive, the Federal Government, which the Federal Government sent during its first term, is examining the appeal to put money into the pockets of the Americans. However, some analysts and many democrats warn that the taxes that have already been concentrated on the rich could be overwhelmed by the cuts of health care and food aid that the Republicans also want to include in legislation. And economists assume that the temporary cuts would at best offer a short sugar high for the economy as a whole.