Stop me if you've heard this before...
Another day, another study saying the GOP tax framework will explode the deficit by cutting taxes on the wealthiest Americans and leaving the middle class behind. Today, Wharton released a study saying that the GOP tax framework will explode the deficit by $3.5 trillion over the next decade and could add as much as $10.6 trillion to the deficit over time. Wharton’s study also directly challenges a number of claims in the White House’s Council of Economic Advisors report that middle-class Americans will benefit from the plan. Highlights from The Hill:
“The Republican tax plan expected to be released this week will explode the deficit, according to a study from the University of Pennsylvania's Wharton School released Monday.”
“The study, which relies on the Penn Wharton Budget Model (PWBM), found that the deficit would increase by $1 trillion to $3.5 trillion over the course of the first decade, based on differing estimates of how the final plan will look. By 2040, the plans would cost between $2 trillion and $10.6 trillion.”
“The Wharton sudy[sic] estimated that the country's economy would grow between 1.3 percent and 1.5 percent over the first decade, which would average out to about 0.2 percent of extra growth each year, well below the levels suggested by the administration.”
“The study also contradicted White House claims that the tax plan's corporate tax cuts would largely end up in workers' pockets, estimating that labor wages would only increase 1.3 percent to 1.4 percent over a decade.”
“The study, which relies on the Penn Wharton Budget Model (PWBM), found that the deficit would increase by $1 trillion to $3.5 trillion over the course of the first decade, based on differing estimates of how the final plan will look. By 2040, the plans would cost between $2 trillion and $10.6 trillion.”
“The Wharton sudy[sic] estimated that the country's economy would grow between 1.3 percent and 1.5 percent over the first decade, which would average out to about 0.2 percent of extra growth each year, well below the levels suggested by the administration.”
“The study also contradicted White House claims that the tax plan's corporate tax cuts would largely end up in workers' pockets, estimating that labor wages would only increase 1.3 percent to 1.4 percent over a decade.”