Trump’s Tax Cut Won’t Power the Growth He Predicts, Officials Concede

[Mileage Psycho]

May as well go ugly early.

Quote

 

Trump’s Tax Cut Won’t Power the Growth He Predicts, Officials Concede

WASHINGTON — The Trump administration pushed a $1.5 trillion tax cut through Congress in 2017 on the promise that it would spark sustained economic growth. While the tax cuts have goosed the economy in the short term, officials now concede they will not be enough to deliver the 3 percent annual growth the president promised over the long term.

To produce that average growth rate for the next decade, White House forecasters say, the American economy would need additional rollbacks in labor regulations, a $1 trillion infrastructure plan and another round of tax cuts.

Getting all those policies implemented would be highly unlikely, given a divided Congress and a ballooning federal deficit, which could limit lawmakers’ appetite to spend money on a new tax cut or infrastructure plan.

But without those additional steps, the president’s economic team predicts in a report released on Tuesday that growth would slow to about 2 percent a year in 2026. That is the year when many of the individual tax cuts included in the 2017 law are set to expire, essentially producing a tax increase for millions of Americans.

Most forecasters project economic growth of about 2 percent in the medium and long run for the United States, but that rate would fall far short of the heady promises that President Trump has made about his ability to fuel the American economy. Mr. Trump has predicted growth of as much as 5 percent, while his advisers have routinely promoted 3 percent as the new normal. Growth averaged just over 2 percent from 2010, the first full year after the Great Recession ended, through 2016, when Mr. Trump was elected to the White House.

Even if all the new measures were adopted, growth would slow over time, but it would still stand at 2.8 percent at the end of the decade, the White House forecasters say.

Mr. Trump’s Council of Economic Advisers outlined the projections on Tuesday in the annual Economic Report of the President. As is customary for all administrations, Mr. Trump’s advisers built their forecasts around the presumption that all of Mr. Trump’s policy proposals would be enacted in the years to come.

Those include making permanent the individual tax cuts from 2017 and the infrastructure package that Mr. Trump occasionally mentions in speeches, but that has never gained serious consideration in Congress.

They also include steps to roll back regulations — many of which are at the state level and out of the control of Congress — that the administration says serve as a barrier to more Americans working. It cites occupational licensing rules, which restrict workers from entering certain fields without certification, and regulations that raise the cost of child care, such as caps on the ratio of children to staff in day care centers.

“One way to reduce the financial burdens of child care for both single and married females considering working is to reduce the direct costs of care,” the report says, adding, “Regulations that impose minimum standards on providers can decrease the availability and increase the cost of obtaining care, thus serving as a disincentive to work.”

Although the White House forecasts consider those deregulatory efforts and infrastructure spending to be nearly as important to growth as tax cuts, Mr. Trump has made relatively little effort to push states and Congress to enact them.

The reliance on new policies to power additional growth helps explain some of the difference in optimism for future growth between White House forecasters and their counterparts in the Federal Reserve, the Congressional Budget Office and the private sector, who all project significantly slower growth over the next 10 years than Mr. Trump does.

It does not explain why the White House has so much more faith in 3 percent growth this year than other forecasters, who have whittled down their expectations for 2019 in light of increased global obstacles to growth and weaker-than-expected readings of the domestic economy so far this year.

On Wednesday, the Fed will release its new economic projections, which many analysts expect will show a slight softening in growth as a result of a prolonged trade war and an economic slowdown overseas.

The forecast that the Council of Economic Advisers released on Tuesday predicts 3.2 percent growth for 2019 — nearly a full point higher than the growth expected by the Fed.

The chairman of the Council of Economic Advisers, Kevin Hassett, said the administration’s faith in long-term economic growth came from their forecasters’ ability to correctly peg growth in 2017 and 2018.

Mr. Hassett told reporters on Monday that it was the council’s job to model growth assuming the president’s policies were fully enacted. He said he was not certain they would be.

“Ask me as an economist, what are the odds that the tax cuts become permanent right now, I’d say 50-50,” Mr. Hassett said.

But he said the council has been encouraged by the early results of the 2017 tax cuts, particularly on investment. In a conference call on Tuesday, he said he was aware of risks to the global economy this year but did not believe a recession was likely in 2020.

“The idea that we would have a recession next year, it’s certainly not impossible,” Mr. Hassett said. “Recessions very often happen, and few people see them coming. But it would be very unusual for such a thing to happen given the maximum amount of capital spending and new capacity that’s being brought online.”

https://www.nytimes.com/2019/03/19/us/politics/trump-tax-cut-economic-forecast.html

 

 

[Angry ginger]

NY times,  more #fakenews says the trumper

 

 

 

 

what ever happened to trumps infrastructure plans he crowed about,  more important to attack a dead man   

[racer254]

Does anyone ever wonder why there is always articles against tax cuts?

How can anyone in their right mind be against tax cuts unless they stand to loose $$$ because of the cuts? 

Edited March 20, 2019 by racer254

[SnowRider]

1 minute ago, racer254 said:

Does anyone ever wonder why there is always articles against tax cuts?

How can anyone in their right mind be against tax cuts unless they stand to loose $$$ because of the cuts? 

Explain.....

 

 

[revkevsdi]

To produce that average growth rate for the next decade, White House forecasters say, the American economy would need additional rollbacks in labor regulations, a $1 trillion infrastructure plan and another round of tax cuts.

They should do it. What another couple of trillion deficit per year. Might as well make the debt huge so the Republicans can complain about it when a Democrat becomes POTUS. 

[racer254]

7 minutes ago, SnowRider said:

Explain.....

 

 

You probably agree to take a bonus or a pay raise every year from your employer, but when tax cuts will do the exact same, you are against them! 

Can you explain that?

[SnowRider]

1 minute ago, racer254 said:

You probably agree to take a bonus or a pay raise every year from your employer, but when tax cuts will do the exact same, you are against them! 

Can you explain that?

 Not even close to the same.  No need to respond to such a stupid question  

[Dave]

1 minute ago, racer254 said:

You probably agree to take a bonus or a pay raise every year from your employer, but when tax cuts will do the exact same, you are against them! 

Can you explain that?

Hes strictly commission likely.

[racer254]

3 minutes ago, SnowRider said:

 Not even close to the same.  No need to respond to such a stupid question  

LOL, you can't explain it...it's really that simple and you have been programmed into thinking it's more complex.  How else can they extract more money from the masses.

[Cop Watch]

I made $10k more this year but my effective tax rate dropped 1.5%. Refund was low due to more in the check. Pretty much a win.

[SnowRider]

1 hour ago, racer254 said:

LOL, you can't explain it...it's really that simple and you have been programmed into thinking it's more complex.  How else can they extract more money from the masses.

 

[Snoslinger]

1 hour ago, racer254 said:

You probably agree to take a bonus or a pay raise every year from your employer, but when tax cuts will do the exact same, you are against them! 

Can you explain that?

 

[Snoslinger]

racer has the thought process of A 3rd grader...

[Jimmy Snacks]

2 minutes ago, Snoslinger said:

racer has the thought process of A 3rd grader...

That's an insult to 3rd graders. 😂

[racer254]

Still waiting for that explanation!  Should be a good game show with slinger and snowbeavis.  "Who is smarter than a 3rd grader"  LOL

 

[racer254]

When are you guys going to realize that the government is supposed to work for us, we provide the funding in tax dollars.  They are not going to stop spending, unless the funding is CUT.  IE tax cuts.  Get it.  NOPE, whenever taxes are cut and the funds are less, you have dipshits like snowbeavis, falling for memes that says shit like "with taxes I build civilization"  and he falls for it.  FFS, we are fucked because of low iq voters like him.

Edited March 20, 2019 by racer254

[Jimmy Snacks]

40 minutes ago, racer254 said:

When are you guys going to realize that the government is supposed to work for us, we provide the funding in tax dollars.  They are not going to stop spending, unless the funding is CUT.  IE tax cuts.  Get it.  NOPE, whenever taxes are cut and the funds are less, you have dipshits like snowbeavis, falling for memes that says shit like "with taxes I build civilization"  and he falls for it.  FFS, we are fucked because of low iq voters like him.

OMG...seriously? How is that working out genius? 

 

https://www.forbes.com/sites/howardgleckman/2018/10/17/getting-the-bill-for-a-tax-cut-and-spending-spree/

Edited March 20, 2019 by Jimmy Snacks

[SnowRider]

44 minutes ago, racer254 said:

When are you guys going to realize that the government is supposed to work for us, we provide the funding in tax dollars.  They are not going to stop spending, unless the funding is CUT.  IE tax cuts.  Get it.  NOPE, whenever taxes are cut and the funds are less, you have dipshits like snowbeavis, falling for memes that says shit like "with taxes I build civilization"  and he falls for it.  FFS, we are fucked because of low iq voters like him.

Poster child for the stupid  

[Zambroski]

9 minutes ago, SnowRider said:

Poster child for the stupid  

No...you’ve got that and almost every other derogatory one sewed up tight.

I’d like to see you debate him.  Or anybody...but you know what happens....a god damn beat down because you are the dumbest clown on this site.

55 minutes ago, racer254 said:

When are you guys going to realize that the government is supposed to work for us, we provide the funding in tax dollars.  They are not going to stop spending, unless the funding is CUT.  IE tax cuts.  Get it.  NOPE, whenever taxes are cut and the funds are less, you have dipshits like snowbeavis, falling for memes that says shit like "with taxes I build civilization"  and he falls for it.  FFS, we are fucked because of low iq voters like him.

Well, this is logical thinking and, that’s the flaw.  It’s not the cuts that are hurting us, it’s the ridiculous spending.  Theoretically though, this train of though (income, expense budgeting) should force some changes but....this is the US Government.  Retards til the end.  The solution is to shrink its size...period.

[Ez ryder]

4 hours ago, Angry ginger said:

NY times,  more #fakenews says the trumper

 

 

 

 

what ever happened to trumps infrastructure plans he crowed about,  more important to attack a dead man   

if he put up a multi billion infustructire plan the house would just cry about it only because he wanted it . 

[SnowRider]

4 minutes ago, Zambroski said:

No...you’ve got that and almost every other derogatory one sewed up tight.

I’d like to see you debate him.  Or anybody...but you know what happens....a god damn beat down because you are the dumbest clown on this site.

Well, this is logical thinking and, that’s the flaw.  It’s not the cuts that are hurting us, it’s the ridiculous spending.  Theoretically though, this train of though (income, expense budgeting) should force some changes but....this is the US Government.  Retards til the end.  The solution is to shrink its size...period.

Balance spending with Dump’s 750 Billion dollar military budget.  Ready....go 👍

[Ez ryder]

18 minutes ago, SnowRider said:

Poster child for the stupid  

oh look the non self aware one is at it again . 

[Ez ryder]

4 hours ago, revkevsdi said:

To produce that average growth rate for the next decade, White House forecasters say, the American economy would need additional rollbacks in labor regulations, a $1 trillion infrastructure plan and another round of tax cuts.

They should do it. What another couple of trillion deficit per year. Might as well make the debt huge so the Republicans can complain about it when a Democrat becomes POTUS. 

i am alm for it and top the sunday with 30% cuts to every department 

[Anler]

So more spending and more tax cuts? The secret formula to the Trump economy!

[Ez ryder]

2 hours ago, SnowRider said:

 

remind us all how much your black spank bank God borrowed and what is the interest on that debt ?