There are many reports highlighting potential damage the US economy may sustain if Donald Trump’s policies are fully implemented.
Although reports show different numbers, there is unanimous agreement that consequences might be hard to swallow.
Among other major issues of Donald Trump’s policies which potentially may harm American economy, immigration, tax cuts and healthcare reforms.
According to The Balance, immigration more than pays for itself. Immigrants add $1.6 trillion to the economy each year. Of that, $35 billion is a net benefit to the companies and communities where they live. The rest (97.8 percent) of that growth returns to the immigrant workers as wages. They repatriate $25 billion back to family members in Mexico. They spend the rest in America.
THE SENATE TAX BILL
CNBC reports that based on any analysis, the biggest tax breaks in the GOP blueprint go to top earners, including Trump himself, through a reduction in the top personal rate, the elimination of the alternative minimum tax and the estate tax, and a reduction in the top rate on “pass-through” business income to 25% from 39.6%.
According to Reuters, the federal government is swimming in red ink with an annual deficit of $550 billion and a national debt — the accumulation of past deficits and interest due to lenders to the U.S. Treasury — exceeding $20 trillion.
The Republican tax plan calls for as much as $6 trillion in tax cuts that would sharply reduce federal revenues. No commensurate spending cuts have been proposed. So, on their own, the tax cuts being sought by Trump would hugely expand the deficit and add to the debt.
Forbes reports that the Senate bill, believe it or not, represents an even more painful bait-and-switch than the House proposal. In 2019, over 85% of middle-class taxpayers will experience a tax cut, but by 2027, over 55% of those earning between $48,000 and $225,000 will pay MORE taxes than they would under current law.
A new government analysis finds that the House’s Obamacare replacement bill would lead to 10 million fewer people lacking health insurance in the next decade than had been estimated by the Congressional Budget Office — but also projects higher premiums for many customers of individual health plans.
The report from the Office of the Chief Actuary of the federal Centers for Medicare and Medicaid Services says that by 2026 there would be 13 million more Americans without health insurance.
In contrast, the CBO estimated in its own report that 23 million more people would become uninsured by 2026 if the House’s American Health Care Act.
And these are only a few issues which could have a long-lasting impact.
These are the problems which can be translated into numbers, But Trump’s policies also could trigger consequences which are difficult to measure: fading international leadership role of the United States, the international reputation of the country, erosion of belief in the legitimacy of the U.S. democratic system in particular and democracy in general.