Trump promises giant tax cut as 'Christmas gift' to American families, cos

US President Donald Trump today said the Congress has reached an agreement on tax legislation that will deliver more jobs, higher wages, and "massive tax relief" for American families and domestic companies.

Trump recognised the tax reform as a campaign promise during his run-up to the 2016 presidential election, saying the "giant tax cut" will be his "Christmas gift" to fellow countrymen.

"Now we're just days away ... from keeping that promise and delivering a truly amazing victory for American families. We want to give you, the American people, a giant tax cut for Christmas," Trump told a select audience at the White House as he delivered an address to the nation making a final pitch for his massive tax reform.

"As we speak, Congress has reached an agreement on tax legislation that will deliver more jobs, higher wages, and massive tax relief for American families and for American companies," he said.

Trump cited an example to explain the impact of the tax cut: "The typical family of four earning USD 75,000 will see an income tax cut of more than USD 2,000, slashing their tax bill in half."

It nearly doubles the amount of income taxed at the rate of zero, he said, adding that the proposed tax reforms also closes special interest loopholes; and lowers tax rates for families. It cuts taxes on businesses, which is expected to raise income by an average of more than USD 4,000, he said.
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US first-quarter growth weakest in three years as consumer spending falters

BREAKING NEWS - The US economy grew at its weakest pace in three years in the first quarter as consumer spending barely increased and businesses invested less on inventories, in a potential setback to President Donald Trump's promise to boost growth.

Gross domestic product increased at a 0.7 per cent annual rate also as the government cut back on defence spending, the Commerce Department said on Friday. That was the weakest performance since the first quarter of 2014.

The economy grew at a 2.1 percent pace in the fourth quarter. Economists polled by Reuters had forecast GDP rising at a 1.2 percent pace last quarter. The survey was, however, conducted before Thursday's advance data on the March goods trade deficit and inventories, which saw many economists lowering their first-quarter growth estimates.

The pedestrian first-quarter growth pace is, however, not a true picture of the economy's health. The labour market is near full employment and consumer confidence is near multi-year highs, suggesting that the mostly weather-induced sharp slowdown in consumer spending is probably temporary.

A measure of private domestic demand increased at a 2.2 per cent rate last quarter. The first-quarter GDP tends to underperform because of difficulties with the calculation of data that the government has acknowledged and is working to rectify.
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