World Business Report The impact of Trump’s tax bill
Jun 4, 2025
The podcast reveals that Trump's tax bill could add a staggering $2.4 trillion to US debt, sparking concern over fiscal sustainability. It also investigates the cyber world, focusing on the hacking group Scattered Spider and their tactics against major brands like North Face and Cartier. Additionally, there's a deep dive into the impact of a 10% tariff on small wine businesses, highlighting the operational challenges they face. Trade talks between the US and Europe are discussed, particularly concerning their implications for US wine importers.
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Tax Bill's Impact on US Debt
- The Congressional Budget Office estimates Trump's tax bill will add $2.4 trillion to US debt by 2030.
- The bill significantly increases deficit borrowing despite White House optimism about savings.
Debt Sustainability Depends on Confidence
- Large US debt can persist if policymakers act responsibly and investors have confidence.
- A fiscal crisis would result from investors doubting US government's fiscal management, not sheer debt size.
US Tax Capacity and Fiscal Options
- The US collects less tax revenue relative to GDP than many rich countries, indicating room to raise taxes if needed.
- Raising revenue, though painful, would be more sustainable than borrowing to finance government spending.