IMF warns: Trump's tax plan may exacerbate the U.S. fiscal deficit and debt burden issues

ChainCatcher news, according to a warning from the International Monetary Fund (IMF), the upcoming Trump tax bill may complicate the task of reducing fiscal deficits and debt burdens in the coming years.

IMF spokesperson Julie Kozack stated that the U.S. needs to gradually reduce public borrowing in order to significantly cut the debt-to-GDP ratio, which is an important measure of debt sustainability.

Kozack said, "The bill seems to contradict the goal of mid-term debt reduction." The IMF typically defines "mid-term" as three to five years. According to data from the Congressional Budget Office, the bill will increase the deficit by $3.3 trillion. (Jin Shi)