Economist says large-scale budget bill Adopted by House Members The support of President Trump last month will weaken critical safety net programs while significantly increasing federal debt.
Republicans call it "tax and expenditure plan"A big bill"The economist will harm millions of Americans by cutting Medicaid and food stamps," wrote in a letter on behalf of the Institute of Economic Policy (a left-leaning think tank).
“Even if the safety net is cut, the House bill will cause public debt to rise by more than $3 trillion in the next few years (if it is permanent rather than phased out, over $5 trillion in the next decade), economists said. “Higher debt and deficits will cause significant upward pressure on inflation and interest rates in the coming years.”
The letter is written by Daron Acemoglu, Peter Diamond and Simon Johnson of MIT; Oliver Hart of Harvard; Joseph Stiglitz of Columbia University; and Paul Krugman of City University of New York City.
The House bill would increase U.S. debt by $31 trillion, an advocacy group that advocates for the advocacy group, including interest, according to data from the committee responsible for the federal budget.
National Deficit rises - The gap between annual government spending and income and the increasing amount of federal debt on Wall Street has raised alarms in rolling financial markets and raised questions about the country's long-term financial stability.
The Trump administration describes the budget plan as a "generation opportunity" to cut government spending and drive economic growth.
The Senate is It is expected to occupy The bill this week and its fate are uncertain amid strong opposition from Democrats and concerns from some Republicans.
"One of the things about this 'big and beautiful bill' is that it's a tool to increase military and border spending," Sen. Rand Paul, a Republican from Kentucky, said Sunday. “Faced with Margaret Brennan.” Paul is a small group of Senate Republicans Express objection To the bill.
"This is $320 billion of new spending. From a perspective, that's far more than all the cuts we've found so far," he added. "So the increase in spending put into this bill outweighs the layoffs."
Six economists who wrote the letter criticized the Republican bill and said that massive tax cuts under the legislation, coupled with hits on Medicaid and food stamps, would increase inequality.
“The combination of cuts with critical safety net programs such as Medicaid and SNAP and tax cuts disproportionately benefit high-income households, which means that housing budgets constitute a huge upward redistribution of income,” they said.
Mr Trump said the proposed tax cuts would expand the reduction under his 2017 tax cuts and employment bill, which would boost workers and incentivize investment in domestic manufacturing.
The White House Economic Advisory Committee claims that the Trump administration's policies, including import tariffs on major U.S. trading partners, will grow and narrow the deficit.