We’re Still Waiting…
…for that economic analysis that Treasury Secretary Mnuchin promised would show that the GOP Tax scam would pay for itself with economic growth. Why? Because it doesn’t exist! After all, tax cuts don’t pay for themselves. Even Paul O’Neill, the first Treasury secretary under President George W. Bush, agrees:
“In pitching the $1.5 trillion tax overhaul, Steven Mnuchin, the Treasury secretary, has said repeatedly that the plan will pay for itself through a surge of economic growth and that over 100 people in Treasury are ‘working around the clock on running scenarios for us.’”
“Those inside Treasury’s Office of Tax Policy, which Mr. Mnuchin has credited with running the models, say they have been largely shut out of the process and are not working on the type of detailed analysis that he has mentioned. An economist at the Office of Tax Analysis, who spoke on the condition of anonymity so as not to jeopardize his job, said Treasury had not released a ‘dynamic’ analysis showing that the tax plan would be paid for with economic growth because one did not exist.”
“The lack of any formal assessment of the bills’ economic effect from the administration comes as Republicans barrel ahead with a plan that is expected to add $1.5 trillion to the deficit at a time when the federal debt has already topped $20 trillion.”
“Paul O’Neill, the first Treasury secretary under President George W. Bush, said that he considered conducting a dynamic score ahead of the 2001 tax cuts, but ultimately stuck with a traditional analysis that did not make projections about the effects on economic growth. Mr. O’Neill said that he was dumbfounded by the notion that the tax cuts working their way through Congress would not add to the debt.”
“‘The whole thing seems astounding to me,’ Mr. O’Neill said. ‘The idea that after the most recently completed fiscal year where we had a $660 billion deficit we’re talking about a big tax cut.’”
“Those inside Treasury’s Office of Tax Policy, which Mr. Mnuchin has credited with running the models, say they have been largely shut out of the process and are not working on the type of detailed analysis that he has mentioned. An economist at the Office of Tax Analysis, who spoke on the condition of anonymity so as not to jeopardize his job, said Treasury had not released a ‘dynamic’ analysis showing that the tax plan would be paid for with economic growth because one did not exist.”
“The lack of any formal assessment of the bills’ economic effect from the administration comes as Republicans barrel ahead with a plan that is expected to add $1.5 trillion to the deficit at a time when the federal debt has already topped $20 trillion.”
“Paul O’Neill, the first Treasury secretary under President George W. Bush, said that he considered conducting a dynamic score ahead of the 2001 tax cuts, but ultimately stuck with a traditional analysis that did not make projections about the effects on economic growth. Mr. O’Neill said that he was dumbfounded by the notion that the tax cuts working their way through Congress would not add to the debt.”
“‘The whole thing seems astounding to me,’ Mr. O’Neill said. ‘The idea that after the most recently completed fiscal year where we had a $660 billion deficit we’re talking about a big tax cut.’”