Treasury Secretary Steve Mnuchin smiles while speaking to the media during the daily briefing in the Brady Press Briefing Room of the White House in Washington, Monday, April 24, 2017. (AP Photo/Pablo Martinez Monsivais)

A budget deficit challenge for Trump's tax plan

April 25, 2017 - 3:47 am

WASHINGTON (AP) — President Donald Trump's campaign pledge to slash the corporate tax rate from 35 percent to 15 percent raises a thorny question for the White House.

How can the president deliver the "massive" tax cut he promised without also blowing a massive hole in the budget?

Most outside economic analyses say such tax cuts would likely fuel even larger deficits for a federal government already projected to see its debt steadily rise. They are also unlikely to generate Trump's ambitious promised growth rate of 3 percent a year, roughly double the 1.6 percent growth achieved last year.

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