The United States is walking a fiscal tightrope. On one side, structural tax cuts enacted in 2025 under the One Big Beautiful Bill Act (OBBBA) promise to stimulate economic growth by reducing corporate and individual tax burdens. On the other, a ballooning national debt—now 100% of GDP—and surging interest costs threaten to crowd out critical investments in infrastructure, education, and innovation. This delicate balance is reshaping economic priorities and recalibrating risk for investors, as policymakers grapple with the long-term consequences of a debt-driven fiscal strategy.
The Tax Cut Gambit: Growth or Gaps?
The OBBBA, signed into law by President Trump in July 2025, made permanent the 2017 Tax Cuts and Jobs Act (TCJA) provisions while introducing new temporary cuts. The Tax Foundation estimates these measures will reduce federal revenue by $4.1 trillion over a decade, even after accounting for dynamic economic…
