4 ms·

Isn't it too early to say what the cost of the tax cuts were? If the Republicans are right, they'll spur enough economic growth to be a net gain across the boar

Isn't it too early to say what the cost of the tax cuts were? If the Republicans are right, they'll spur enough economic growth to be a net gain across the board in both new economic activity (wealth). I don't know if there's a proper name for it, but I'd much prefer a dollar spent in the private sector so the government doesn't have to spend two just to accomplish the same thing.

woofyman 8y ago
> I don't know if there's a proper name for it Voodoo Economics
mrep 8y ago
Don't know why you are getting downvoted since you are right, it is called the Laffer curve [0]. Granted, most evidence shows the maximum tax revenue rate to be closer to 70% so it is highly unlikely that these tax cuts will increase revenue. [0]: https://en.wikipedia.org/wiki/Laffer_curve https://en.wikipedia.org/wiki/Laffer_curve
tfehring 8y ago
>I'd much prefer a dollar spent in the private sector so the government doesn't have to spend two just to accomplish the same thing. This is a false equivalence because the government and the private sector spend money on very different things. If the tax cuts end up being funded by reductions in entitlement spending, for example, the private sector won't funnel money into Social Security and Medicare to offset those reductions. >If the Republicans are right, they'll spur enough economic growth to be a net gain across the board in both new economic activity (wealth) CBO projections imply that the nearly all of the long-term gains from the tax cuts will flow to foreign investors [0], so it certainly won't be a net gain for the US as a whole. [0] https://www.brookings.edu/blog/up-front/2018/05/10/cbo-estimates-imply-that-tcja-will-boost-incomes-for-foreign-investors-but-not-for-americans/ https://www.brookings.edu/blog/up-front/2018/05/10/cbo-estim...

4 ms·

Isn't it too early to say what the cost of the tax cuts were? If the Republicans are right, they'll spur enough economic growth to be a net gain across the boar

by Covzire 8y ago

woofyman 8y ago
> I don't know if there's a proper name for it Voodoo Economics
mrep 8y ago
Don't know why you are getting downvoted since you are right, it is called the Laffer curve [0]. Granted, most evidence shows the maximum tax revenue rate to be closer to 70% so it is highly unlikely that these tax cuts will increase revenue. [0]: https://en.wikipedia.org/wiki/Laffer_curve https://en.wikipedia.org/wiki/Laffer_curve
tfehring 8y ago
>I'd much prefer a dollar spent in the private sector so the government doesn't have to spend two just to accomplish the same thing. This is a false equivalence because the government and the private sector spend money on very different things. If the tax cuts end up being funded by reductions in entitlement spending, for example, the private sector won't funnel money into Social Security and Medicare to offset those reductions. >If the Republicans are right, they'll spur enough economic growth to be a net gain across the board in both new economic activity (wealth) CBO projections imply that the nearly all of the long-term gains from the tax cuts will flow to foreign investors [0], so it certainly won't be a net gain for the US as a whole. [0] https://www.brookings.edu/blog/up-front/2018/05/10/cbo-estimates-imply-that-tcja-will-boost-incomes-for-foreign-investors-but-not-for-americans/ https://www.brookings.edu/blog/up-front/2018/05/10/cbo-estim...