BlackRock's Fink Voices Concerns With Trump Tax Plan
April 28 2017 - 12:06PM
Dow Jones News
By Sarah Krouse
BlackRock Inc. Chief Executive Laurence Fink cast doubt on the
viability of the Trump administration's tax plan, saying that if
the proposal adds to the country's deficit, it will create a
"severe issue."
Mr. Fink, who runs the world's largest asset manager, also
called the possibility of sustainable 3% growth unlikely. Part of
the challenge the U.S. faces, Mr. Fink said, is demographics. Baby
boomers, the largest living generation in the country is aging,
reaching retirement age.
"With our demographics it seems pretty improbable to see
sustainable 3% growth," Mr. Fink said at an investing conference
hosted by research firm Morningstar Inc. in Chicago.
Earlier Friday, the Commerce Departments said gross domestic
product, the broadest measure of goods and services produced in the
U.S., rose 0.7%, at a seasonally adjusted annual rate, in January
through March. That marked the economy's weakest quarter since
early 2014.
A reduction in immigration could further erode growth, taking
away one of the "major engines of growth," Mr. Fink added.
On taxes, Mr. Fink said lower rates "unquestionably" can
stimulate more investments by businesses and will filter into the
economy, but that the president's proposal adds to the country's
deficit at a time when it is already "on the path of having
explosive deficits."
Mr. Fink said growth between 2.25% and 2.75% was more realistic,
noting savings from tax cuts should be channeled into an
infrastructure stimulus program.
Even with the stock market at record highs, Mr. Fink said the
U.S. is "decelerating."
"We're growing slower than France. That's really terrible," he
said.
Part of that slowdown is related to questions over the new
administration's agenda, he added.
Write to Sarah Krouse at sarah.krouse@wsj.com
(END) Dow Jones Newswires
April 28, 2017 11:51 ET (15:51 GMT)
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