InvestorsHub Logo
Followers 210
Posts 23995
Boards Moderated 5
Alias Born 10/25/2003

Re: Mariner* post# 374309

Wednesday, 12/06/2017 9:24:30 PM

Wednesday, December 06, 2017 9:24:30 PM

Post# of 447329
Why Economists Are Warning That The Trump Tax Plan Will Be An Epic Disaster

http://talkingpointsmemo.com/dc/political-pressure-trumped-fiscal-responsibility-in-gop-tax-cut-crusade

"But Bruce Bartlett, an economic adviser to President Ronald Reagan who helped craft the 1986 tax bill, said such comparisons are extremely misleading.
“There is no historical evidence that any tax cut in history comes anywhere near paying for itself,” he said bluntly. “At the most you get back a third of the revenue you lose, but that might be overly optimistic.”
Bartlett, who also served as a Treasury Department official under George H.W. Bush, added that most previous tax cuts were enacted during economic downturns with high unemployment, and argued this bill will have far less positive impact because the economy is already doing well.
“When there is more slack in the economy, you get more bang for the buck,” he explained. “But there’s no reason to think that now, when we’re at a cyclical peak, that we’ll see any stimulative effect at all. If I were a corporate executive, I wouldn’t be building new factories for all the new sales I’m going to get.”

Stan Collender, a former top staffer on the House and Senate Budget Committees, who worked under both Republican and Democratic administrations, said not only will the current bill fail to help the country, it will cause significant harm.
“Unless the laws of economics have been repealed, and not even Trump can do that, this has the potential for being one of the biggest disasters in American history,” he told TPM. “The deficit hawks who for the last few months have been in a witness protection program are going to emerge with a vengeance to demand the deficit they just increased exponentially is a problem, and the pressure on Social Security and Medicaid is going to be pretty intense.”

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.