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Wed May 24, 2017, 11:39 AM

Economists See Little Magic in Tax Cuts to Promote Growth.

(in case anyone wondered)

'If one assumption has undergirded Republican economic policy for decades — and is the foundation of the Trump administration’s first budget proposal — it is that tax cuts will unleash fantastic growth.

The basic idea is that shrinking the government’s share increases what people take home, encouraging workers to work more and investors to invest more. But while taxes can create incentives that can promote growth, liberal and conservative economists alike said there was no evidence that the White House budget announced on Tuesday would do so.

“The assumed effects on growth are just huge and unwarranted,” said William G. Gale, a co-director of the nonpartisan Urban-Brookings Tax Policy Center and a former economic adviser to the first President George Bush.

The Trump administration promises to cut taxes, keep revenues steady and crank out average annual economic growth of 3 percent, but neither the budget nor the tax reforms previously outlined in sketchy form provide enough detail to figure out if that will happen.'>>>

https://www.nytimes.com/2017/05/23/business/economy/trump-budget-tax-cuts-economic-growth.html?

6 replies, 4202 views

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Reply Economists See Little Magic in Tax Cuts to Promote Growth. (Original post)
elleng May 2017 OP
unblock May 2017 #1
elleng May 2017 #2
Kablooie May 2017 #3
NCjack May 2017 #4
elleng May 2017 #5
Warpy May 2017 #6

Response to elleng (Original post)

Wed May 24, 2017, 11:42 AM

1. moreover, cutting government spending directly lowers growth. they always seem to ignore that....

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Response to unblock (Reply #1)

Wed May 24, 2017, 11:44 AM

2. They ignore EVERYTHING,

they ARE ignorant/ignoramuses, and must NOT control important decision-making.

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Response to elleng (Original post)

Wed May 24, 2017, 11:45 AM

3. The Kansas Republicans would disagree.

They just voted to keep their huge tax cuts because they are so great for the economy.
The fact that the economy has collapsed as a result does not bother them in the least.

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Response to elleng (Original post)

Wed May 24, 2017, 01:33 PM

4. The 47% have been pumped dry of cash. To prime-the-pump, double

the minimum wage, cut taxes on the 47% and raise taxes on the top 5%.

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Response to NCjack (Reply #4)

Wed May 24, 2017, 02:31 PM

5. Yes

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Response to elleng (Original post)

Wed May 24, 2017, 02:54 PM

6. They'll inflate the already hyperinflated stock market

and drive up housing costs in markets that are bubbling again, like California, Las Vegas, and Florida, while they also fatten the net worth of people who already have enough wealth to last several thousand lifetimes. They will have no other positive effect and taking more money out of the larger economy will worsen an already desperate situation.

Don't think it's desperate? Start looking at your local strip malls.

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