The tax-cut legislation proposed by President Trump is projected to adversely affect younger Americans economically while benefiting older generations. Analysts indicate that while the bill offers some tax breaks to younger people, these advantages do not offset the long-term economic burden imposed by an increase in national debt, estimated at $3 trillion. This could inhibit economic growth and lead to higher taxes and mortgage payments for those in their youth today. As a result, the intergenerational wealth transfer will favor older demographics significantly, leaving younger individuals to bear the fiscal consequences.
U.S. President Donald Trump's sweeping tax-cut legislation would effectively transfer wealth from younger Americans to older generations, nonpartisan analysts say.
Future generations are kind of left holding the bag, said Kent Smetters, director of the Penn Wharton Budget Model.
In the short term the benefits are certainly tilted towards higher earners, which is often a good proxy for age, said Jessica Riedl.
There is an obvious intergenerational transfer here, said John Ricco of the Yale Budget Lab.
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