Trump's Tax reform: lower taxes and higher costs

US President Donald Trump is promoting a large-scale tax bill, which was approved by the House of Representatives on May 22 and sent to the Senate. If the document is finalized, it will become a law offering tax cuts for citizens while increasing spending, primarily on defense.

Economists predict that the reform will bring short-term economic recovery, but in the long term it may lead to an increase in the budget deficit. Tax cuts reduce treasury revenues, while increased defense spending increases the burden on the budget. The bottom line is clear: incomes are decreasing, but expenses are rising.

The yield on US Treasury bonds, which act as the main instrument of government debt, fell slightly after a sharp rise on May 21, but remains above the level of the beginning of the year. This indicates the caution of investors demanding higher returns due to doubts about the reliability of the loan to the White House.