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Economic Viewpoint

United States: Public Finances

Caught Between the President’s Dreams and Reality

April 1, 2025
Francis Généreux
Principal Economist

President Trump has repeatedly claimed that the budget could be balanced through spending cuts and higher tariffs. But the budget shortfall is so big that it’s hard to see how they could actually be enough. Aside from the massive deficit, we also need to consider the cost of extending the 2017 tax cuts, additional promises of tax relief for businesses and households, and increased spending on immigration controls, defence and security. The budget proposals currently before Congress don’t go far enough to eliminate deficits anytime soon.

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United States: Public Finances (PDF, 338 KB)
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