According to what JPMorgan Chase had to say, massive tax hikes will soon be introduced in the US. Check out the latest reports about the matter below.
JPMorgan Chase releases warning
According to a new forecast from JPMorgan Chase, the United States government will have to extract more money from American taxpayers and businesses, as its liabilities become too much to handle.
Michael Cembalest, Chairman of Market and Investment Strategy for JPM’s Wealth and Asset Management branch, has cited data from the Congressional Budget Office (CBO) which suggests that all Federal government revenues will be consumed by entitlement payments and interest on the Federal debt by the early 2030s.
Cembalest believes that before that happens, lawmakers will be pressured into finding further revenue sources to balance the budget, and various tax hikes may be proposed.
“Sometime before this happens, I expect a combination of market pressure and rating agency downgrades (which have already begun) to force the US to make substantial changes to taxes and entitlements…
A wealth tax is also a possibility; there’s an active Supreme Court case that might impact its constitutional feasibility (Moore vs United States, which is related to the constitutionality of the Mandatory Repatriation Tax in the 2017 tax bill).
[As well as] further cuts to discretionary spending [are also possible], since the US has run out of road on that one.”The following information should be noted: Cembalest has provided a list of new taxes, entitlement cuts, and adjustments that could be implemented to improve the US government’s fiscal outlook.
As of January 8th, 2024, the total debt obligations of the US government amounted to $34,012,198,872,291.
The Congressional Budget Office (CBO) reported that the Federal government collected $4.9 trillion in revenue in 2022, with most of the revenue coming from income taxes.
Stay tuned for more news about the tax hikes.
