November 7, 2017 / 3:48 PM / a year ago

U.S. tax plan seen a temporary economic boost, but a debt burden: Fitch

U.S. President Donald Trump holds sample tax forms as he promotes a newly unveiled Republican tax plan with House Republican leaders in the Cabinet Room of the White House in Washington, U.S., November 2, 2017. REUTERS/Carlos Barria

NEW YORK (Reuters) - Fitch Ratings said on Tuesday a version of Republican House tax plan would pass the Congress, but it would result in only a short-lived boost for the U.S. economy and add significantly to the federal debt burden.

The main short-term risk to United States’ AAA-rating from Fitch would be a failure to raise the debt ceiling by the first quarter of 2018 when the Treasury Department’s scope for extraordinary measures is expected to be exhausted, the rating agency said.

Reporting by Richard Leong

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