Wednesday , October 17 2018
Home / Econbrowser - James Hamilton / Formal Assessment of the Growth Impact of the TCJA

Formal Assessment of the Growth Impact of the TCJA

Summary:
Never have so many simulations been ignored in favor of faith in tax cuts. Here’s the CRFB’s run down on growth impacts from the tax legislation as passed. Source: Committee for a Responsible Federal Budget (Jan. 3, 2019). Hence “the final bill [increases] average GDP growth by just 0.01 to 0.02 percentage points per year over a decade.” I am glad to see that the unicorns and tooth fairies folks have not taken over the JCT (yet). (Here is one example of the “unicorn and fairy dust” crowd, who makes a reference to a mysterious organization called the “JTC”).

Topics:
Menzie Chinn considers the following as important:

This could be interesting, too:

Menzie Chinn writes And Back in Fiscal-Land

Menzie Chinn writes Political Calculations on Soda Tax Concludes: No Externalities Internalized

John H. Cochrane writes The Tax-and-Spend Health-Care Solution

John H. Cochrane writes Who will pay unfunded state pensions?

Never have so many simulations been ignored in favor of faith in tax cuts. Here’s the CRFB’s run down on growth impacts from the tax legislation as passed.

Formal Assessment of the Growth Impact of the TCJA
Source: Committee for a Responsible Federal Budget (Jan. 3, 2019).

Hence “the final bill [increases] average GDP growth by just 0.01 to 0.02 percentage points per year over a decade.”

I am glad to see that the unicorns and tooth fairies folks have not taken over the JCT (yet). (Here is one example of the “unicorn and fairy dust” crowd, who makes a reference to a mysterious organization called the “JTC”).

Menzie Chinn
He is Professor of Public Affairs and Economics at the University of Wisconsin, Madison

Leave a Reply

Your email address will not be published. Required fields are marked *