World Bulletin / News Desk
CBO Director Keith Hall said the national debt would be equal to 97.1 percent of gross domestic product in 10 years in a letter to congressman Richard Neal, a Democratic member of the House Ways and Means Committee currently pouring over the proposed legislation.
That estimation is 5.9 percent higher than the CBO’s projection of what the ratio of debt to GDP would be under current conditions.
The Tax Cuts and Jobs Act bill was announced last week and received praise from Republicans in Congress and President Donald Trump as a way to simplify the tax code and allow businesses to create more jobs.
Critics, however, have charged that the more than 400-page bill is a giveaway to corporations and the wealthiest Americans.
Kevin Brady, chairman of the House Ways and Means Committee, announced amendments to the bill this week. The CBO projections were based on those amendments.
“The staff of the Joint Committee on Taxation determined that provisions in the Chairman’s amendment would increase deficits over the 2018-2027 period by $1.4 trillion (not including the macroeconomic effects of enacting the legislation),” Hall wrote. “By CBO’s estimate, additional debt service would boost the 10-year increase in deficits to $1.7 trillion.”
Brady and fellow Republicans have said their proposals would add no more than $1.5 trillion to the debt.
Republicans have charged that the “macroeconomic effects” that would result from the bill -- more jobs and higher earnings – would offset any increase to the national debt, but they have not provided much evidence for the claim.
At an event Wednesday morning prior to the release of the CBO’s report, House Speaker Paul Ryan said Republican losses in several off-year state elections the previous night put more pressure on the party’s plan to overhaul the tax code.
Passing the legislation, he said, would “bear fruit politically, but most importantly, it's going to help people”.
Office workers, farmers and radio hosts are taking on new nationalities, relocating their businesses or looking forward to lucrative alternative trade deals, as politicians struggle to come up with a plan.
The International Monetary Fund was going to be "attentive" to the consequences of the reform, which notably includes a sharply lower corporate tax rate, she told French radio station France Inter.
More than 9,000 new companies established in January, according to major business body
Company reaches settlement with EPA following investigation started in 2014
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The European aircraft maker said in a statement that net profit nearly tripled to 2.87 billion euros ($3.6 billion) in 2017 from 995 million euros a year earlier.
BIST 100 rises 1.05 percent; USD/TRY exchange rate drops to 3.7820
Saudi Aramco's crude output in March will be 100,000 barrels per day (bpd) below its February level while exports will be kept below seven million bpd, the energy ministry said.
Turkish Central Bank says annual deficit rose to $47.1B in 2017
The figure follows up growth of 0.9 percent in the first quarter of 2017, 0.6 percent in the second, and 0.7 percent in the third -- all adjusted for price, seasonal and calendar effects.
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Consumer Prices Index 12-month rate at 3 percent in January 2018, unchanged from December 2017
BIST 100 rises 0.43 percent, while USD/TRY exchange rate drops to 3.7980
Turkey has produced over 1.1 million tons red meat in 2017, TurkStat says
BIST 100 rises 0.88 pct; USD/TRY exchange rate falls to 3.80 while EUR/TRY exchange rate stays at 4.68
Olaf Scholz, of the Social Democratic Party (SDP) that this week struck a deal to reform Germany's so-called grand coalition government with Chancellor Angela Merkel, said Germany "doesn't need to dictate to other European states how they run themselves".