Germany's central bank on Monday said President Trump's tax plans may provide a short term boost but would likely hurt the U.S. economy and lead to a 30 percentage-point increase U.S. debt-to-gross domestic product ratio within a decade. The comments, published in the Bundesbank's monthly report, are a rare commentary by the German central bank specifically on U.S. economic policy. They come amid tensions between Berlin and the new U.S. administration over German trade surpluses. In a rough blueprint published last month, the Trump administration pushed for cutting the corporate tax rate to 15% from 35% and reducing some income and estate taxes. The plans face a tough battle in Congress, where some lawmakers are worried about adding to large budget deficits.
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