IMF Warning: Trump Tax Law Could Worsen US Fiscal Deficit and Debt Burden

BlockBeats News, July 4th, the International Monetary Fund (IMF) warned that the upcoming Trump tax legislation could make the task of reducing the fiscal deficit and debt burden in the coming years more complicated. IMF spokesperson Julie Kozack stated that the U.S. needs to gradually reduce public borrowing in order to begin significantly reducing the debt-to-GDP ratio, which is also a key measure of debt sustainability.

Kozack stated: "The bill seems to contradict the goal of mid-term debt reduction." The IMF typically defines "mid-term" as three to five years. According to Congressional Budget Office data, the bill will increase the deficit by $3.3 trillion. (FXStreet)