US Tax Cuts Won’t Be Here This Year Says Carlyle Group

President Donald Trump is very serious about pushing through the tax cuts promised in his campaign but getting them through Congress will not be easy, according to The Carlyle Group’s David Rubenstein.

“He certainly intends to follow through but getting things through our Congress is not that easy. But it’s clear from the President’s speech last night and what he’s said before that that he’s very serious about the promises he made during his campaign…I think he’ll push,” the private equity giant’s co-founder told CNBC in Berlin on Wednesday.

Given the lengthy Congressional process, Rubenstein estimates we are unlikely to see a definitive outcome on the tax cut question this year.

“The President will no doubt have some principles that he’ll set forth soon and no doubt there’ll be corporate tax cuts in those and repatriating money from offshore. I think that’ll probably happen in the next week or two or three… but I think it’ll take about a year before it gets done,” said Rubenstein, reminding viewers that a similar length of time was needed for former Presidents Ronald Reagan and George W. Bush to enact their changes to tax policy.

While much media commentary has focused on exactly how the current administration will square Trump’s priorities of cutting taxes and boosting fiscal spend, Rubenstein sounded a sanguine note on the prospect of yet another rise in the debt ceiling, a restriction which he clarified was not a constitutional requirement.

“Every President struggles to get the debt ceiling raised and Congress is never in favour of it but the debt ceiling always does get raised and it’ll get raised eventually,” he said, adding that once that happened, he would expect borrowing to increase given the relatively supportive environment provided by current interest rates and the existing ratio of debt to gross domestic product (GDP).

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.