Trump touted the American dream China should be careful to deal with

US Republicans announced the final version of the tax reform is expected to be approved by both houses of the House on Tuesday. President Trump said the tax reform is expected to push the U.S. GDP growth to 6%, which means that next year the economy will be good and the U.S. dollar will continue to strengthen. The United States should formulate measures to cope with the tax-spillover effect.

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Trump is expected to become the act this week. Trump has high hopes for this. He said that after the tax reform is implemented, not only will every American benefit from it, but the rate of economic growth will also be raised to 4% to 6%, making the United States powerful again .


 

The Reserve predicts economic growth of 2.5% this year. Trump's estimation of tax reform could eventually double GDP to 6%, almost following China's economic growth. The last 6% growth in the United States was the Raggan era 33 years ago. Scholars have estimated that for every 1% increase in U.S. economy, it can generate 3 trillion U.S. dollars in taxes. Is it too optimistic? Or has he always done a real show of exaggerated style?

In theory, tax cuts not only allow companies to pay less tax, in fact make profits surge, but also make employees more bonuses, wage earners spend more money, plus allow multinationals to pay only one-time lower exchange Tax rebate, will be parked overseas 2.6 trillion US dollars repatriated to stimulate investment and consumption, driving enterprises to recruit more people and boost the economy.