Trump’s tax package comes too late and won’t help the US economy much

Executive orders signed by American president Donald Trump last weekend, which should serve as a tax relief for many working Americans, probably won’t help the world’s largest economy much.

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Too little, too late. That is how most economic experts evaluate measures approved by American president Donald Trump, Reuters reported. These measures should lower tax burden of working Americans and provide extra unemployment benefits of $400 per week for those who lost their jobs due to the pandemic. 

According to Mark Zandi, economist at Moody’s Analytics, the package could provide American economy with stimulus just over $400 billion. And Michael Ferol, JPMorgan Chase economist, believes that it could be even less than $100 billion. Lydia Boussour, analyst at Oxford Economics, says that the impact of Trump’s orders in the amount of 0.2% of GDP is rather “negligible volume”. 

Experts agree that the current presidential orders represent incomparably smaller support to the economy in comparison to stimulus packages approved by the Congress in last months – be it package of $1 billion passed by the Congress or $3 billion approved by the House of Representatives. Even if Trump’s orders represented stimulus of $400 billion, it would still be only a tenth of financial help approved by the lawmakers. Not to mention some more billions pumped into the economy by the Fed. 

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