🔍 SharpFokus Brief – Smoke & Mirrors: What Trump’s Budget Really Does
July 5, 2025
Headlines are screaming again:
“Trump’s new bill blows up the deficit!”
But let’s pause. The reality is far more subtle — and perhaps smarter.
This isn’t a budget bombshell. It’s a reshuffle of priorities.
Here’s what’s really in the bill:
⸻
🔧 Maintains tax cuts
This bill doesn’t introduce new tax breaks — it simply extends the previous ones, avoiding a sharp increase in taxes for individuals and businesses.
Critics call that a “cost,” but it’s preventing a tax hike, not slashing revenue.
💵 Reduces future spending growth
The bill cuts or slows funding for some IRS expansion and climate-related programs — areas critics claim were bloated.
This isn’t austerity. It’s about prioritizing core functions.
🛡️ Strengthens security & border enforcement
More money for border control, policing, and defense.
The aim: greater domestic stability, which often supports investment, growth, and confidence.
📉 Deficit impact? Not so fast.
Budget models assume:
• Every tax cut loses revenue.
• Every spending line adds to the deficit.
But people change behavior.
If the economy stays strong, growth can boost revenue, even with lower tax rates.
If spending is focused and smart, efficiency can improve.
⸻
So what is Trump really doing?
🔄 Maintaining growth, reducing unnecessary bureaucracy, and prioritizing national security.
It’s not reckless. It’s strategic.
The real risk isn’t the size of the deficit — it’s where the money goes and whether it delivers return.
⸻
📈 Want real returns — not just headlines?
We publish 7 reports a week on Indonesia’s Top 100 companies ranked by Cashflow Return on Assets (CFROA).
No noise. No hype. Just real performance.
👉 Subscribe now: sharpfokus.com/subscribe
July 5, 2025
Headlines are screaming again:
“Trump’s new bill blows up the deficit!”
But let’s pause. The reality is far more subtle — and perhaps smarter.
This isn’t a budget bombshell. It’s a reshuffle of priorities.
Here’s what’s really in the bill:
⸻
🔧 Maintains tax cuts
This bill doesn’t introduce new tax breaks — it simply extends the previous ones, avoiding a sharp increase in taxes for individuals and businesses.
Critics call that a “cost,” but it’s preventing a tax hike, not slashing revenue.
💵 Reduces future spending growth
The bill cuts or slows funding for some IRS expansion and climate-related programs — areas critics claim were bloated.
This isn’t austerity. It’s about prioritizing core functions.
🛡️ Strengthens security & border enforcement
More money for border control, policing, and defense.
The aim: greater domestic stability, which often supports investment, growth, and confidence.
📉 Deficit impact? Not so fast.
Budget models assume:
• Every tax cut loses revenue.
• Every spending line adds to the deficit.
But people change behavior.
If the economy stays strong, growth can boost revenue, even with lower tax rates.
If spending is focused and smart, efficiency can improve.
⸻
So what is Trump really doing?
🔄 Maintaining growth, reducing unnecessary bureaucracy, and prioritizing national security.
It’s not reckless. It’s strategic.
The real risk isn’t the size of the deficit — it’s where the money goes and whether it delivers return.
⸻
📈 Want real returns — not just headlines?
We publish 7 reports a week on Indonesia’s Top 100 companies ranked by Cashflow Return on Assets (CFROA).
No noise. No hype. Just real performance.
👉 Subscribe now: sharpfokus.com/subscribe