Economists expect modest boost from tax cuts - KXXV-TV News Channel 25 - Central Texas News and Weather for Waco, Temple, Killeen |

Economists expect modest boost from tax cuts

(Source: Raycom Media) (Source: Raycom Media)

By PAUL WISEMAN
AP Economics Writer

WASHINGTON (AP) - Economists expect a tax overhaul to provide a modest boost to the U.S. economy but are increasingly worried that a rewrite of the North American Free Trade Agreement will take a toll on growth.

The National Association of Business Economics survey found that forecasters expect tax law changes to add 0.2 percentage points of growth to the U.S. economy, down slightly from what they expected in the previous NABE survey in September. The survey was taken Nov. 6-15, before the Senate passed a major tax overhaul early Saturday.

Forty-six percent of 51 panelists believe the renegotiation of NAFTA will do at least some damage to the American economy, up from 27 percent in September. NAFTA has expanded trade between the United States, Mexico and Canada, but President Donald Trump calls it a job-killing disaster and is demanding a better deal.

Talks to revamp NAFTA began in August but have bogged down over the United States' demands, including its insistence a new deal bring down America's trade deficits and guarantee that more auto production moves to America.

The NABE economists expect the U.S. economy to expand 2.2 percent this year and 2.5 percent in 2018. They expect unemployment to match October's 4.1 percent throughout the first half of 2018, and then slip to 4 percent in the second half.

They also expect inflation to remain below the Federal Reserve's 2 percent target next year. But they still expect the Fed, which has already raised interest rates twice this year, to raise rates again in December and to approve three more hikes in 2018.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • National politicsMore>>

  • AP-NORC Poll: 52 percent say country worse off under Trump

    AP-NORC Poll: 52 percent say country worse off under Trump

    Saturday, December 16 2017 9:56 AM EST2017-12-16 14:56:12 GMT
    Sunday, December 17 2017 12:40 AM EST2017-12-17 05:40:18 GMT
    Americans are painting a pessimistic view of the country and President Donald Trump as 2017 comes to a close.More >>
    Americans are painting a pessimistic view of the country and President Donald Trump as 2017 comes to a close.More >>
  • Trump defends tax plan, proclaims economy set 'to rock'

    Trump defends tax plan, proclaims economy set 'to rock'

    Saturday, December 16 2017 3:16 AM EST2017-12-16 08:16:02 GMT
    Sunday, December 17 2017 12:40 AM EST2017-12-17 05:40:16 GMT
    (AP Photo/J. Scott Applewhite). House Ways and Means Committee Chairman Kevin Brady, R-Texas, is pursued by reporters in the Capitol after signing the conference committee report to advance the GOP tax bill, in Washington, Friday, Dec. 15, 2017.(AP Photo/J. Scott Applewhite). House Ways and Means Committee Chairman Kevin Brady, R-Texas, is pursued by reporters in the Capitol after signing the conference committee report to advance the GOP tax bill, in Washington, Friday, Dec. 15, 2017.

    Republicans working to execute their first major legislative achievement of Donald Trump's presidency appear to have secured the votes to pass a massive tax overhaul that Trump hoped to present to Americans. 

    More >>

    Republicans working to execute their first major legislative achievement of Donald Trump's presidency appear to have secured the votes to pass a massive tax overhaul that Trump hoped to present to the American people for Christmas.

    More >>
  • After Alabama, abortion may be backseat issue in 2018 races

    After Alabama, abortion may be backseat issue in 2018 races

    Saturday, December 16 2017 12:06 PM EST2017-12-16 17:06:09 GMT
    Sunday, December 17 2017 12:40 AM EST2017-12-17 05:40:11 GMT

    Both Democratic and Republican operatives say abortion may take a backseat to other issues in 2018 now that conservative Alabama has elected a Democrat who supports abortion rights.

    More >>

    Both Democratic and Republican operatives say abortion may take a backseat to other issues in 2018 now that conservative Alabama has elected a Democrat who supports abortion rights.

    More >>
Powered by Frankly