With the House of Representatives today passing the Senate’s bigger version of the budget reconciliation, the Republicans appear to have met President Trump’s timeline – to have the bill reach his desk for signing by the July 4th Independence Day holiday. The bill avoids any fiscal tightening by extending the original Trump tax cuts that were due to expire at year-end. But, after factoring in the additional revenues from new tariffs, it appears that the budget deficit will remain close to 6% of GDP for the next few years, suggesting that there is little additional fiscal stimulus.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services