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

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. 

author avatar
EditorialTeam
The Trader-Magazine.com EditorialTeam is a collective of certified financial analysts, active traders, and cryptocurrency experts. Our mission is to transform complex market data (forex, equities, indices) into accessible financial education. All content undergoes rigorous, multi-level fact-checking to ensure we deliver only accurate, objective information for your trading and investment decisions.

Top 10 financial instruments for 2022. What will their prospects be in 2023?

The year 2022 has brought countless surprises and obstacles...

Telegram scams: how they work and how to protect yourself

Telegram has become one of the most widely used...

Trump Saved TikTok from a Ban. The App in the U.S. Moves into American Hands

TikTok narrowly avoided a ban in the United States...

Climate Change Poses Major Risks to Financial Markets, Regulator Warns

WASHINGTON — A top financial regulator is opening a...

Golden Brokers Review

Golden Brokers Limited was founded in 2018, it is...

Siemens’ Quarterly Profit Beats Estimates as the Company Benefits from AI-Related Demand

German industrial conglomerate Siemens increased its profit from industrial...

Sell Stop Orders: How They Work, When They Trigger and Where They Fail

A sell stop order allows investors to automatically sell an asset...

German Authority Investigates PayPal Over Possible Restriction of Competition

The online payment system PayPal may be engaging in...

Airbnb Could Earn More From the Same Booking

Airbnb plans to bring car rentals and partner services directly into its platform. With AI customer support reducing overheads, the company aims to earn higher profits from existing customer bookings.

Over-the-Counter Markets: How OTC Trading Works Outside Centralized Exchanges

Over-the-counter (OTC) trading allows investors, financial institutions, and companies...

Maersk’s profits grew, but a return via Suez may squeeze margins [1]

Maersk posted an operating profit of USD 3.3 billion...

Shooting Star Candlestick: How to Read It Without Trading the Shape Alone

A shooting star candlestick can warn that an upward...
spot_img