A big part of why the bond market hates the GOP tax cuts is how they increase the debt: The bill cuts taxes for the rich while cutting spending on social safety net programs. Overall, economist Justin Wolfers summed it up as “the largest redistribution from poor to rich in American history.”
As a result, the GOP budget bill won’t just increase the annual government deficit, it will hurt economic growth. That’s because tax cuts to the rich provide less juice to the economy than other types of spending. Rich people are, well, already rich, so they have less of what economists call “marginal propensity to spend” the extra money they get to keep. Trump’s budget also cuts programs that directly increase economic growth, like clean energy tax benefits from the Inflation Reduction Act.
Add to that the fact that Trump’s tariffs remain at levels that amount to one of the greatest tax increases in American history, the cost of which will be borne disproportionately by middle- and lower-income consumers, and the outcome is simultaneous and wildly hypocritical fiscal austerity and profligacy that will hamper growth and increase the national debt.
Lol source?