Donald Trump’s tax cuts would add to American growth—and debt

OF THE MANYGDPGDPCBO differences between Donald Trump and Joe Biden, perhaps the easiest to quantify has to do with tax policy. Mr Biden has long pledged to raise taxes on both the wealthy and companies. Mr Trump’s main legislative achievement from his presidency was a tax-cut package in 2017. Unsurprisingly, many corporate bosses prefer Mr Trump on taxes. The big economic question is whether they are being short-sighted and overlooking America’s fiscal health, which they also profess to care about.When Mr Trump was elected in 2016, net federal debt was about 75% of . When he left office in 2021, it was 97% of . The Congressional Budget Office () forecasts that it is on track to hit an eye-watering 181% three decades from now. At that level the government’s annual interest payments are expected to exceed its combined spending on national defence, education and highways. That raises the risk of a financial crisis—hardly an ideal environment for business.