By BayAreaObserver follow Apr 20, 4:12pm 266 views 3 comments
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“The deal will pay for itself,” Mnuchin declared during a question-and-answer session at the Institute of International Finance’s Washington Policy Summit. The secretary added, however, that the administration “fundamentally believe[s] in dynamic scoring” and will judge the proposal’s impact on the deficit accordingly.
Treasury Secretary Steve Mnuchin said Thursday that economic growth will pay for a “majority” of President Trump’s tax reform plan, acknowledging that eliminating loopholes and deductions will finance only a portion of the ambitious proposed overhaul of the nation’s tax code.
Conservatives have long argued that the cost of tax cuts should be evaluated using dynamic scoring, rather than traditional scoring. They don’t believe tax cuts must be fully paid for in legislative text, arguing that the economic growth they create will outweigh any additional money the tax cuts add to the national debt.
Many progressives dispute that claim, saying that past tax cuts haven’t yielded the economic growth that dynamic-scoring proponents have promised. They believe dynamic scoring encourages fiscally irresponsible proposals that will blow up the deficit.
#Taxes #DejaVu #TaxReform #ItWillPayForItself
Speaking of things that were supposed to pay for themselves....Who Said the War Would Pay for Itself? They Did!
There is a lot of money to pay for this that doesn’t have to be US taxpayer money, and it starts with the assets of the Iraqi people. We are talking about a country that can really finance its own reconstruction and relatively soon.”
“When it comes to reconstruction, before we turn to the American taxpayer, we will turn first to the resources of the Iraqi government and the international community.”
“It is unimaginable that the United States would have to contribute hundreds of billions of dollars and highly unlikely that we would have to contribute even tens of billions of dollars.”
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The fist will FEEL! GREAT! when you cover it with Vaseline!
LOVE THE FIST!
FEEL! THE! FREEDOM!
The IMF is saying world growth will be about 3.5% ... provided, you know, there are no major upsets or protectionism in play.
Things are looking great! MAGA ... like the 1930s.
During his campaign and since, Trump promised to slash business taxes by more than half and to cut taxes on individuals as well. The proposals, usually expressed in fairly general terms, would cost the country trillions of dollars in revenue over a 10-year budget window, and the administration has yet to identify spending cuts or other revenue sources that would make up the difference.
That leaves economic growth to do the heavy lifting, and it’s no small job. Different analyses of a tax plan Trump released during the campaign all showed his proposals costing the Treasury between $2.6 trillion and $9 trillion over the space of a decade. One of the most sympathetic analyses, from the conservative-leaning Tax Foundation, scored Trump’s proposal dynamically and still found it cut revenue by nearly $2.6 trillion over ten years.
That’s a real problem for the administration if, as Mnuchin warned on Thursday, the tax reform package has to be passed as part of a budget reconciliation package in the Senate.
The reconciliation process, which Republicans are currently trying to use to repeal the Affordable Care Act, has the benefit of avoiding the filibuster in the Senate. But it also comes with a major restriction in the form of the Byrd Rule, which prevents it from being used to pass legislation that would add to the federal deficit beyond the 10-year budget window.
Effectively, that means that unless the administration can convince the Congressional Budget Office and the Joint Committee on Taxation that its reform proposal is at least budget neutral in the long term, it won’t be able to pass the Senate without legislative tinkering similar to the “sunset” provision that caused tax cuts passed in the early years of the Bush administration to expire early in President Obama’s first term.