Economists Say GOP Tax Plan Will NOT Grow The Economy

(Cartoon image is by Jack Ohman in the Sacramento Bee.)

Donald Trump, and his Republican cohorts in Congress, still claim that their tax plan (which gives massive cuts to the rich and to corporations) will grow the economy (producing jobs and raising wages). The problem is that tax cuts have not done that in the past, and economists say it won't do it this time either. The following is part of an article by Rebekah Entralgo at Think Progress:

Overhauling the tax code before Christmas would be a difficult task under “normal” conditions, yet Republicans in Congress are pledging to do just that with their tax bill.

There’s just one big problem: It is a supremely poor tax plan that doesn’t provide middle-class tax relief while also serving as a substantial handout to the wealthy.

A University of Chicago survey released Tuesday polled 42 of the nation’s leading economists about the Republican tax plan — and all but one said they do not agree with claims that the plan will grow the economy.

This survey is yet another piece of analysis that eviscerates a popular White House talking point that by cutting taxes for corporations, the GOP tax plan would create so much economic growth that the average American family would get a raise of about $4,000 dollars.

Earlier this week, analysis from the non-partisan Tax Policy Center found that, despite claims from White House officials like chief economic adviser Gary Cohn, the tax cuts will not pay for themselves through growth. In total, the House bill would yield around $169 billion in additional tax revenue, nowhere near enough to cover the roughly $1.5 trillion in revenue loss from a corporate tax cut.

This University of Chicago survey echoes another survey conducted by the institution in May. Back then, 35 out of 37 economists believed the Trump tax cuts wouldn’t pay for themselves; the other two didn’t understand the question.