The Trump administration's tax reform bill is "fiscally irresponsible" and an assumption that growth will pay for the cuts is "delusional" — according to a top fixed income investment house."This is going to produce larger and larger deficits which will have to have to be made up at some point in the future," said Kapstream Capital Portfolio Manager Steve Goldman, who helps to oversee more than $11.8 billion dollars in funds under management. The U.S. Senate approved a tax overhaul on Saturday , moving Republicans and President Donald Trump a step closer to their first major legislative win, and a goal to slash taxes to boost growth. "In the short run, it looks like this is going to add somewhere between 0.2 and 0.3 percent to annualized growth, so it's a good short-run story," Goldman told CNBC's "The Rundown."But the investor is less optimistic on the long-term benefits."Republicans have normally been known as the fiscally responsible party. This isn't something that you would call fiscally responsible," he said.The Senate GOP tax plan will increase the deficit by more than $1.4 trillion over a decade, according to analysis by the Congressional Budget Office. That includes money for additional debt service payments due to the bill."I think when you add a trillion dollars to a deficit that's grown and grown over the years, that is fiscally irresponsible. It's exactly what the Republican Party has rallied against for many, many years, so it's odd that they would pass a tax bill that adds a trillion dollars to the government deficit," said Goldman.The reforms are partly aimed at boosting corporate profits and could lead to a wave of corporate share buy-backs. GOP lawmakers argue that economic growth will boost tax revenues over time, and growth alone could make up for the revenue gap."I don't think there is any credible economist or study that would show that growth will make up for the losses that we will see in the deficit. That would be delusional thinking," added Goldman. The Trump administration's tax reform bill is "fiscally irresponsible" and an assumption that growth will pay for the cuts is "delusional" — according to a top fixed income investment house. "This is going to produce larger and larger deficits which will have to have to be made up at some point in the future," said Kapstream Capital Portfolio Manager Steve Goldman, who helps to oversee more than $11.8 billion dollars in funds under management. The U.S. Senate approved a tax overhaul on Saturday , moving Republicans and President Donald Trump a step closer to their first major legislative win, and a goal to slash taxes to boost growth. "In the short run, it looks like this is going to add somewhere between 0.2 and 0.3 percent to annualized growth, so it's a good short-run story," Goldman told CNBC's "The Rundown." But the investor is less optimistic on the long-term benefits. "Republicans have normally been known as the fiscally responsible party. This isn't something that you would call fiscally responsible," he said. The Senate GOP tax plan will increase the deficit by more than $1.4 trillion over a decade, according to analysis by the Congressional Budget Office. That includes money for additional debt service payments due to the bill. "I think when you add a trillion dollars to a deficit that's grown and grown over the years, that is fiscally irresponsible. It's exactly what the Republican Party has rallied against for many, many years, so it's odd that they would pass a tax bill that adds a trillion dollars to the government deficit," said Goldman. The reforms are partly aimed at boosting corporate profits and could lead to a wave of corporate share buy-backs. GOP lawmakers argue that economic growth will boost tax revenues over time, and growth alone could make up for the revenue gap. "I don't think there is any credible economist or study that would show that growth will make up for the losses that we will see in the deficit. That would be delusional thinking," added Goldman.
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