IMF Warns Trump's Tax Plan May Complicate Debt Reduction Efforts

According to Odaily, the International Monetary Fund (IMF) has issued a warning that the upcoming tax legislation proposed by U.S. President Donald Trump could complicate efforts to reduce fiscal deficits and debt burdens in the coming years. IMF spokesperson Julie Kozack emphasized the need for the United States to gradually decrease public borrowing to significantly lower the debt-to-GDP ratio, a crucial measure of debt sustainability. Kozack stated, "The plan appears to contradict the goal of reducing debt in the medium term." The IMF typically defines "medium term" as a period of three to five years. Data from the Congressional Budget Office indicates that the legislation could increase the deficit by $3.3 trillion.