Given the recent events surrounding the Republican Senate’s proposed tax cuts in the United States, analysts have started to consider the possible effects of the possible bill to the economy and to the overall U.S. market in the coming year.
Although the tax cuts offer huge companies operating in the country a positive outlook, some have commented on the possible effect of the economy on the government’s debt and its potential to boost economic growth in the long run.
While some have stated that the economic growth of the United States is long overdue, the tax cuts and job act under Trump’s administration worth around $1.5 trillion is expected to boost this growth further and send the economy into a long and high rally.
The economy of the United States which has been described to be on its ninth year of slow or weak recovery by analysts has been hampered by its heavy debts and its occasional spat with China with this year becoming a stepping stone for an eventual economic recovery that will take its pace during the year 2018.
Analysts have also argued the effects of the low inflation sending the economy into a lukewarm position in terms of growth. Economists have stated that a weak economic performance up until the year 2019 will end the year-long run fo the economic expansion which started in 1991 until 2001.
Some also have commented on how the possibility of the current economic growth resulting into a full government shutdown should government officials and politicians break its focus from the current debt heights which has the possibility of sending the economy currently into a recession.
The government, particularly the Republican Senate has been increasing its efforts into getting the corporate tax reform being signed and implemented.
Currently, the U.S. market has been mostly optimistic regarding the U.S. tax plan with most of the global markets following suit with the rally of most Wall Street stocks. Failure of the government pushing through with the cuts may also result in a shutdown as analysts warned with the federal government being shut down. This will also cost the economy around $6.5 billion every week which is a gross domestic product worth 0.2% which would result into a difficult time for the GDP recovering sooner.
This is FSM News bringing you the freshest and biggest market updates. We provide in-depth analysis and detailed news stories to keep investors constantly informed in this fast-paced, dynamic industry. Read more from us and be updated!