Trump, Signs Tax Cut Bill 'BBB'… Fiscal Policy Drive Ahead Of Presidential Election

In the end, President Trump led the signing of the tax cut plan (Source: NBC News)

U.S. President Donald Trump officially signed the tax cut bill 'BBB(Bigger, Better, Beautiful Act)'. This bill is a large-scale tax cut measure focused on lowering corporate tax rates and reducing taxes for the middle class and is considered a strong fiscal stimulus ahead of the 2024 presidential election.

According to CBS News on the 6th (local time), President Trump stated at a press conference held at the White House, "This bill is a great victory for the American people," and "It will induce economic growth, job creation, and increased business investment."

This tax cut plan includes reducing the corporate tax rate from 21% to 15% and expanding income tax deduction items for middle-class households. It also includes a one-time reduction measure for companies repatriating overseas profits to the U.S. mainland.

The Republican party claims that this bill will strengthen the competitiveness of the U.S. economy and raise real wages, but the Democratic party maintains its opposition, stating that it is a policy skewed towards high-income earners and large corporations.

Meanwhile, concerns have been raised about the expansion of the fiscal deficit due to large-scale tax cuts. With the increase in federal government debt and demands for interest rate cuts overlapping, there are suggestions that it could lead to issues regarding the Fed's monetary policy independence in the future.