Archive · 6 Jun 2025
Economist: Trump's 'Big Bill' Could Reduce US Deficit
David Seif, an economist, thinks Trump's 'Big, Beautiful Bill' might actually lower the US debt slightly.
He says this is because the bill could cut spending and bring in lots of money from tariffs (taxes on goods from other countries).
Some reports said the bill would add to the debt, but Seif says those reports are misleading because they assume that tax cuts from Trump's first term would disappear.
The market has already assumed that the tax cuts would be extended.
Economist David Seif believes Trump's bill could decrease the US deficit.
Seif attributes this to potential spending cuts and tariff revenue.
The bill primarily aims to extend expiring tax cuts.
Seif disputes claims that the bill significantly increases the deficit.
The market anticipated that tax cuts would be renewed.
- Who
- David Seif, Chief Economist at Nomura Securities International
- What
- Trump's 'Big, Beautiful Bill'
- When
- Next couple of years.
- Where
- United States
- Why
- Extend expiring tax cuts.
Critics
Nomura Securities International
Economic Impact
Critics
Concerns regarding the deficit.
Nomura Securities International
Bill could decrease the US deficit.
- Economist
- David Seif
- Bill's impact
- Could lead to a small decrease in the US deficit
- Key factors
- Spending cuts and tariff revenues
- Primary Purpose
- Renew expiring tax cuts
Sources
US Congressional Budget Office's warning: Trump's big bill could raise national debt by $2.4 trillion; 10.9 million to lose health insurance
Trump's tariffs would cut US deficits by $2.8T over 10 years and shrink the economy, CBO says
