“It’s pretty clear they’re wrong.”
The latest evaluation of the Senate’s tax bill Thursday is enough to end the Republican “fantasy of magical growth” in the economy, top Finance Committee Democrat Sen. Ron Wyden (OR) said.
Congress’s Joint Committee on Taxation, the official body tasked with estimating the tax bill’s impact, reported the Senate Republican’s tax bill would grow the economy by about 0.8 percent over 10 years, and still cost about $1 trillion.
That is a wildly lower growth number than what Republicans have been promising; Treasury Secretary Steve Mnuchin had said, “not only will this tax plan pay for itself, but it will pay down debt.” As Republicans hurtle toward a vote on the bill, the report massively undercuts the GOP’s argument for the bill.
But senate Republicans say they just don’t believe the analysis.
“I think it’s pretty clear they’re wrong,” Majority Whip Sen. John Cornyn (R-TX) said of the JCT score.
Cornyn said the tax bill would bring “at least” 3.2 percent annual GDP growth. Sam Greenberg, an analyst with the right-leaning Tax Foundation, calculated an annual 4 percent year-over-year GDP growth, which Trump has suggested would mean the economy was about 12.9 percent larger on average. The JCT score, which calculates economic growth over a decade, estimated the tax bill would grow the economy an average 0.8 percent in that time.
This is the first dynamic score of the tax bill, meaning it forecasts how the economy will react to the policy. Republicans are making the argument that huge corporate tax cuts will bring back jobs and investments and massively grow the economy — in other words, that tax cuts would pay for themselves. They have long called for this kind of scoring.
But now, with an estimate much less optimistic than what they’ve been selling to their Read More Here