Appaloosa Management’s David Tepper said tax cuts were too steep and likely borrowed economic growth from the future.
“Some of the tax things were good, and some were not so good,” Tepper said on CNBC’s “Halftime Report” on Thursday, arguing the tax cuts were “too much” at a time of growth.
The Republican-majority Congress and President Donald Trump pushed through big corporate tax cuts last year that will add a projected $1.5 trillion to the federal deficit. And Congress is now taking up the possibility of more tax cuts, which could add another $627 billion, according to the Joint Committee on Taxation.
In the CNBC interview, Tepper said this could have consequences down the road. “I don’t think we needed to do the tax cuts” as much, he said. “Are we borrowing economic growth now from what we could see in the future? I do believe some of that’s happening right now with these tax cuts.”
He added, “We’ll probably have to have some payback at some point.”