Results for: Tax cuts

Former President Donald Trump vowed to double down on tax cuts if re-elected, contrasting his stance with President Joe Biden’s proposed tax increases on businesses and high earners. Trump’s comments emphasize his focus on reducing taxes for all income brackets, while Biden aims to eliminate tax cuts benefiting households earning over $400,000 and raise levies on wealthy individuals and corporations. The expiration of personal income tax cuts from Trump’s 2017 law in 2025 will necessitate tax negotiations regardless of the election outcome.

Kansas Democratic Governor Laura Kelly has vetoed a broad tax cut package for the second time in three months, citing concerns about its long-term financial impact on the state. The vetoed bill, which enjoyed bipartisan support in the Republican-controlled Legislature, included income, sales, and property tax cuts worth $1.5 billion over the next three years. Kelly said that the bill was “too expensive” and would jeopardize the state’s future fiscal stability. She also expressed concerns that the plan’s move to two personal income tax rates would benefit the wealthy at the expense of the middle class. Republicans criticized Kelly’s veto, arguing that Kansas needs and deserves tax relief, and that the state has sufficient surplus funds to cover the cost of the cuts. Kelly proposed a new tax cut plan worth roughly $1.3 billion over the next three years, but the Kansas House’s top Republican dismissed it as “not serious” about tax relief.

A report by Scotiabank Economics warns that Canada’s economy would suffer a greater impact than the United States if Donald Trump wins the upcoming presidential election and imposes promised tax cuts and tariffs on all U.S. imports. The report says that Canada’s GDP would likely fall by 3.6% by 2027 relative to current forecasts, while inflation and interest rates would also rise. The report warns that Canada needs to urgently address its issues with lagging productivity to make itself less vulnerable to economic shocks from trade policy changes in the U.S. and abroad.

Government borrowing exceeded the OBR forecast by £6.6 billion, raising concerns about the feasibility of tax cuts ahead of the next general election. Despite increased tax receipts, benefit payments rose significantly due to inflation-linked upratings, leading to a provisional public sector net debt estimation of 98.3% of GDP. While tax revenues have helped offset public spending, the high debt burden and impending National Insurance cuts raise questions about the government’s room for fiscal maneuverability.