The project includes tax exemptions to companies. From Goldman Sachs they warned that the new proposals of the Republican senators will add, at least, hundreds of billions of dollars to the debt.
The changes proposed by the US Republican senators to the broad draft tax and expenses cut by President Donald Trump could raise debt levels of the American country, but in line with those of a version already approved by the House of Representatives, analysts said on Tuesday.
The Senate Republicans revealed on Monday the changes proposed to the bill that the House of Representatives approved last month. The modifications, subject to negotiations, some tax exemptions would make permanent related to companies, while limiting the deduction of state and local taxes on income.
Alec Phillips, analyst Goldman Sachshe wrote in a note on Tuesday: “The fiscal effects of Senate legislation in its current version will probably be similar in the coming years to those approved by the Chamber.” The proposals will probably add “at least a few hundred billion dollars” to the estimated cost of legislation in 10 years, he added.
The legislation approved by the House of Representatives would add U $ 2.4 billion to the US public debt in the next 10 years, or U $ 3 billion If interest costs are taken into account, the committee for a responsible federal budget, a non -partisan agency at the beginning of this month. Likewise, the cost would amount to U $ 5 billion In a decade if the legislators extend the temporary provisions, according to the committee.
Concerns about the fiscal impact of the bill have been a key engine of the United States bond market in recent weeks, since a significant increase in the United States debt, which is already US $ 36 billion, It could raise treasure yields.
Source: Ambito
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