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The TCJA 2017 did not measurably increase GDP so it would be odd if reversing it were to measurably decrease GDP growth.
by jeffbee 3y ago
The TCJA 2017 did not measurably increase GDP so it would be odd if reversing it were to measurably decrease GDP growth.
- ec109685 3y agoHow is it possible tease apart what does and does not increase the gdp.
- Guvante 3y agoThe TJCA increased our deficit by 1.2% of GDP and the economy grew by 0.7 to 3.5% in the two years from when it passed to COVID making measurements meaningless. Assuming the upper end of that and half the usual 2% YoY growth we paid 1.2% of our GDP for a 1% increase in growth... So literally nothing as reducing taxes causing an increase of the same amount in GDP isn't meaningful. And that is assuming some generous conditions.
- ec109685 3y agoHow do you know what the GDP would have been without the tax cut? While these cuts never “pay for themselves”, raising the gdp at all is a lower bar.
- Guvante 3y agoI don't think it raised the GDP as evidenced by the GDP normally increasing by 2%. Saying "but it would have been lower" is pointless.