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The 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.
by Guvante 3y ago
The 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.