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Do tax cuts pay for themselves?
2001400ex
Member Posts: 29,457
in Tug Tavern
https://www.yahoo.com/news/u-tax-cuts-dont-pay-themselves-republican-appointed-201552799--business.html
The new Republican-appointed director of the Congressional Budget Office delivered some bad news on Tuesday to the party's "Reaganomics" devotees: Tax cuts don't pay for themselves through turbocharged economic growth.
Keith Hall, who served as an economic adviser to former President George W. Bush, made the pronouncement at his first news conference after the CBO reduced its 2015 budget deficit forecast by $60 billion.
"No, the evidence is that tax cuts do not pay for themselves," Hall said in response to a reporter's question. "And our models that we're doing, our macroeconomic effects, show that."
His comment is at odds with lingering economic theory from the 1980s that some Republicans still hold dear: Stronger economic growth generated by tax cuts would boost revenues so much that there is less need to find offsetting savings.
Even though major tax cuts in the early 1980s and early 2000s ended up boosting deficits while also propping up short-term growth, many Republicans cite the growth argument as a major motivation to cut tax rates as part of a tax reform effort.
The new Republican-appointed director of the Congressional Budget Office delivered some bad news on Tuesday to the party's "Reaganomics" devotees: Tax cuts don't pay for themselves through turbocharged economic growth.
Keith Hall, who served as an economic adviser to former President George W. Bush, made the pronouncement at his first news conference after the CBO reduced its 2015 budget deficit forecast by $60 billion.
"No, the evidence is that tax cuts do not pay for themselves," Hall said in response to a reporter's question. "And our models that we're doing, our macroeconomic effects, show that."
His comment is at odds with lingering economic theory from the 1980s that some Republicans still hold dear: Stronger economic growth generated by tax cuts would boost revenues so much that there is less need to find offsetting savings.
Even though major tax cuts in the early 1980s and early 2000s ended up boosting deficits while also propping up short-term growth, many Republicans cite the growth argument as a major motivation to cut tax rates as part of a tax reform effort.
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