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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”).

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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

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