Expert economists are 94 percent sure Trump’s tax cuts for the rich will balloon the deficit
A panel of expert economists have agreed with 94 percent certainty that President Donald Trump’s tax cut plan will never spur enough economic growth to pay for itself.
In a survey published this week by the University of Chicago, a panel of expert economists were asked to weigh in on Trump’s plan, which largely benefits businesses and people with significant investment income.
Treasury Secretary Steven Mnuchin has promised that the Trump administration will pay for the tax cuts “through economic growth, and through eliminating a lot of deductions.”
But economists surveyed by the University of Chicago said that cutting taxes has not historically spurred economic growth. In fact, there was not a single economist who claimed that there was any precedent for a tax cut paying for itself through growth since 1980. The expert panel agreed with 97 percent confidence that every tax plan that has relied on economic growth has coincided with a fall in tax revenue.
And when it came to Trump’s plan, the economists predicted more of the same.
Only 5 percent of the economic panel said that Trump’s plan would pay for itself. Overall, the panel predicted with 94 percent certainty that the plan would never spur the economic growth needed to prevent additional deficit spending.
(h/t: The Washington Post)