President Trump’s Tax Cuts Promote Growth, Reduce Deficit
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The Treasury’s tax report says that the combined impact of Trump’s economic agenda will drive enough growth to pay for the tax cuts.
Treasury’s Office of Tax Policy based its growth estimates on the 2018 White House budget, which contained some different tax provisions from those in the legislation Congress is considering.
The new analysis found that GDP (gross domestic product) would increase to an average of 2.9% over 10 years, which would lead to $1.8-T in new revenue, more than offsetting the tax plan’s almost $1.5-T cost.
Roughly 50% of the boost in growth would come from corporate tax cuts, while the other 50% would come from changes to pass-throughs, individual tax cuts and “a combination of regulatory reform, infrastructure development, and welfare reform as proposed” in The Trump Administration’s 2018 budget.
The bill’s backers, including Secretary Mnuchin argue the tax plan would pay for itself through robust economic growth resulting from the cuts
“We believe there will be $2-T of additional growth,” Sec. Mnuchin said. “So under our plan, we believe this will cut the deficit by $1-T and that’s what we’re focused on.”
Sec. Mnuchin last month released a letter signed by 9 economists, many from past Republican administrations, saying the tax plan will lead to “substantial growth.”
Monday, the US major stock market indexes finished at: DJIA +56.87 at 24386.03, NAS Comp +35.00 at 6875.08, S&P 500 +8.49 at 2659.99
Volume: Trade on the NYSE came in at: 783-M/shares exchanged
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