President Donald Trump could realize a major victory by introducing tax reform, according to a Bloomberg poll of 38 economists and experts. Among those surveyed, 29 expect Congress to pass a tax-cut legislation before November 2018. Also, the tax cut could result in an incremental 0.2 percentage points to the pace of gross domestic production expansion in 2018.
The White House is active in holding "all-hands-on-deck" weekly meetings to create a viable path toward a tax plan that is likely to see support on both sides of the aisle, Bloomberg noted. This appears to contrast with the healthcare strategy, which was "at times haphazard."
Related Link: Analyst: Here's What To Expect From Congress On Debt Ceiling, Tax ReformTrump's administration wants to introduce a permanent tax overhaul and commence hearings after Labor Day with a timeline of reaching the House in October and the Senate in November.
Meanwhile, a broader survey of 71 economists expects the U.S. economy to grow by 2.3 percent in 2018, which would mark an acceleration from expectations for 2.1-percent growth in 2017, Bloomberg added.
But the momentum will be short lived, as the economy is expected to cool down in 2019 and grow just 2 percent, notably short of the 3-percent figure Trump guided to months ago.
"The type of stimulus being talked about is temporary," Nariman Behravesh, chief economist at consultants IHS Inc told Bloomberg. "It won't deliver a sustained increase in growth."
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