Goldman Sachs doesn't think the Republican tax bill would be a big boost to the US economy

[DonViejo]

Source: Business Insider




Bob Bryan

Republicans have promised their tax bill would lead to a huge boost for economic growth.

Goldman Sachs' economic team estimated that the bill would give the US a small economic boost in 2018 and 2019.

"We note that the effect in 2020 and beyond looks minimal and could actually be slightly negative," the Goldman economists wrote.

In the lead up to the passage of the Republican tax bill in the Senate overnight on Saturday, GOP leaders boasted that the bill would be a huge boon for the US economy.

Goldman Sachs does not agree.

Alec Phillips and Blake Taylor, analysts on Goldman's US economic analysis team, say the Senate version of the Tax Cuts and Jobs Act (TCJA) would provide a small short-term boost to growth. But that boost would quickly fade.

"We have increased our estimate of the growth effects of the legislation slightly, to around 0.3pp in 2018 and 2019," Phillips and Taylor said in a note to clients on Monday. "This reflects the slightly larger amount of tax cuts in the Senate plan following revisions, and our expectations regarding the eventual compromise."


Read more: http://www.businessinsider.com/trump-tax-reform-bill-goldman-sachs-text-analysis-2017-12

[dalton99a]

1. Meanwhile, Goldman Sachs execs eagerly await their tax cuts

[yardwork]

9. Evidently not, or they wouldn't be speaking out against it.

[not fooled]

2. It's not designed to help the economy

It's designed to reward donors and destroy Social Security, Medicare, and Medicaid.

[still_one]

3. And so do the vast majority of prominent economists. In fact, most people who itemize deductions

today, will not realize any tax benefit, and very well might have a tax increased since the personal exemption is being eliminated

[getagrip_already]

4. yeah, and almost all scientists agree

that global warming is the result of hman activity and is accelerating. But the trump team is about to eliminate NOAA in their proposed budget.

Don't like the analysis, get rid of the analyzers.

If you income is derived from a regular paycheck, you will pay more in taxes. But don't expect anyone to be around to document that.

[still_one]

6. So true

[Egnever]

5. And that is because the tax cuts for the workers fall off.

The only real stimulus is temporary.

[BigmanPigman]

7. When they publicly oppose it and throw their support to the

Dems, it is all BS. Tom Steyer is using his own money and is now running anti Tax Scam commercials with his Impeachment ad campaign.

[nitpicker]

8. If you have two kids and work McJobs

There is less pay in the paycheck. More taxes are taken out up front, and people won't get the CTC refund until next year.