Given the passage of the 2017 Tax Cut what is the expected i

Given the passage of the 2017 Tax Cut, what is the expected impact upon the budget deficit and public debt over the next 10 years? why?

Solution

During the recent tax cut, it can be mentioned that, the main aim of the tax cut is nothing but to encourage more and more investments or capital inflows into the country. Though there is decrease in tax rates, the capital inflows will indeed dominate the reduce in revenue with which in the long run, the budget deficit and public debt will decrease on the whole.