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Trump Deficit Forecast Is Built on Shaky Assumptions


Woolfsmck

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Woolfsmck

https://www.msn.com/en-us/news/politics/trump-deficit-forecast-is-built-on-shaky-assumptions-experts-say/ar-BBZRw41?ocid=spartanntp

 

"A lot of specific policies are meaningful, but the overall numbers are largely phony,” said Marc Goldwein, senior vice president at the Committee for a Responsible Federal Budget

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How come the Republicans can't see this?

Trickle down is more like … line our own pockets theory...

like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true
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Economy

For starters his "tax cuts will pay for themselves" required them to have a ripple effect of nearly 6 times (as in $6 of GDP growth for every $1 tax cut) based on the fact that taxes on private sector equal roughly 17% of GDP :sis:

 

Your lucky to get a ripple effect of 3X under the most favourable of circumstances :enigma:

 

So even in the best of times a $200 Billion tax cuts will only lift growth to compensate back about $100 Billion based on rough current US taxation levels. They never pay for themselves

 

This baffon can't make sense of the most basic things so I definitely don't trust him and his team for any kind of fiscal projections :neyde:

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Woolfsmck
46 minutes ago, Economy said:

For starters his "tax cuts will pay for themselves" required them to have a ripple effect of nearly 6 times (as in $6 of GDP growth for every $1 tax cut) based on the fact that taxes on private sector equal roughly 17% of GDP :sis:

 

Your lucky to get a ripple effect of 3X under the most favourable of circumstances :enigma:

 

So even in the best of times a $200 Billion tax cuts will only lift growth to compensate back about $100 Billion based on rough current US taxation levels. They never pay for themselves

 

This baffon can't make sense of the most basic things so I definitely don't trust him and his team for any kind of fiscal projections :neyde:

This is one time that I am side with the liberals on policy....

Cutting corporate tax rate to Competative levels sure helped since the former rates were prohibitive to luring foreign investement...

But they are too steep and the growth stimulus would have been about the same if the rates were left a little higher...

Plus, the biggest issue is what the gov. does with said tax payer money...

More spending controls, less bs..  

like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true
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Economy
1 hour ago, Woolfsmck said:

This is one time that I am side with the liberals on policy....

Cutting corporate tax rate to Competative levels sure helped since the former rates were prohibitive to luring foreign investement...

But they are too steep and the growth stimulus would have been about the same if the rates were left a little higher...

Plus, the biggest issue is what the gov. does with said tax payer money...

More spending controls, less bs..  

The old 35% rates (plus State Rates) were too  high and Internationally uncompetitive

 

The new 21% rates Trump brought (factoring in that there's new loopholes as well that make the real rate even lower) is too low and America is loosing too much revenue and not resulting in as much growth as promised anyway

 

Something in the middle between old high rate and new low rate would be ideal but as usual Balance is a concept that's challanging for the Government to grasp it's always gotta be one extreme or the other :sis:

 

21% is not a bad rate if it was an effective rate (that's in line with many developed nations) but it's very low when u factor in that the US tax code has A LOT of loopholes for expense write offs and very very few Corporations actually pay 21%

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