US President Donald Trump’s proposed tax cuts for individuals and businesses could add trillions of dollars to the country’s budget deficit and would significantly benefit the wealthy, according to fiscal experts and lawmakers.
On Wednesday, US Treasury Secretary Steven Mnuchin said Trump’s plan would “pay for itself with growth” and closing of some deductions and credits.
Mnuchin said the Trump administration will overhaul America’s “very uncompetitive” tax system with what he said would be “the biggest tax cut” in US history.
However, economists say the plan is not nearly enough to replace lost revenues, while rising deficits could even take back some of the economic gains.
Among the proposals are a reduction in the corporation tax rate from 35 percent to 15 percent, and an easing of tax for small businesses to the same rate.
The plan could add $3 trillion to more than $5 trillion to the federal deficit over five years, said Maya MacGuineas,…