Tax Bill, That Only Draws Damage
As we already know, the Senate has approved the tax bill. Economists say, the plan won’t provide much improvement neither to the economy, nor to people. Income tax cut will increase households’ disposable income - leading element of personal consumption, residential investments and business capital outlays, which in turn accounts for 85% of a Gross Domestic Product. The demand for imports will grow and pressure on companies that sell their products abroad will ease. That is, the trade balance will worsen, as trade surplus will drop and trade deficit will rise.