Imf cuts global economic growth forecasts to 2.6% in 2016 from 3.4% in 2015
By Mark Hosenball
PHILADELPHIA (Reuters) – U.S. President Donald Trump’s budget proposal would hit the economy with trillions of dollars in tax cuts, while reducing the economy’s role in global trade, according to a new forecast by the federal government and congressional panel.
The White House said on Tuesday the administration would spend $1.2 trillion in 2016 on defense and other programs that would produce annual growth of 2.6 percent in the first six months of 2017 and a decline of more than $500 billion in the first year of the proposed administration’s term.
It also would slash taxes for corporations and individuals, especially on income above $250,000 and investment income.
The White House said the budget cuts by nearly $1 trillion over 10 years, and the elimination of other tax breaks that benefit business, would spur the economy.
But a Congressional Budget Office analysis by the panel’s Republican majority panel found the cuts would slow the overall economic recovery, while causing the gap between rich and poor to widen.
The panel’s budget analyst, the panel’s top Republican, said on Tuesday it would reduce corporate tax rates to 20.5 percent from 28 percent in the Trump administration’s fiscal 2018 budget.
“That would not be good for the economy,” said Mike Green of the left-leaning Center on Budget and Policy Priorities.
A separate analysis by the panel found the budget plan would increase budget deficits by $4.7 trillion and add $1 trillion to the national debt over 10 years.
“The Trump administration’s budget proposal is not just bad for the U.S. economy, but it’s a recipe for an even worse fiscal mess in the near term,” said Paul Ryan, chairman of the Republican House of Representatives, and Steven Mnuchin, the treasury secretary.
The panel’s repo바카라사이트rt on Tuesday says the proposed cuts would cost the government an estimated $17.1 trillion over 10 years, and $14.6 trillion over 10 years over the next four years. The panel’s nonpartisa바카라사이트n analysis said tot바카라al tax revenues would be $1.7 trillion lower under the plan over 10 years than under current law.
Mnuchin, the Treasury secretary, and Green said the cuts would stimulate economic growth and create 10 million jobs over the first 10 years of the president’s term and 30 million jobs over the next four years. The Republican-le