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Economics Discuss House GOP Tax Plan Would Slow Economic Growth, Add Trillions To The Deficit at the Political Forums; Less growth, more deficits, all to make very rich folks just a little richer. The party of fiscal and personal ...

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Old 07-09-2017, 06:58 PM
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Default House GOP Tax Plan Would Slow Economic Growth, Add Trillions To The Deficit

Less growth, more deficits, all to make very rich folks just a little richer.

The party of fiscal and personal responsibility.

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In an updated analysis, the Tax Policy Center estimates that the House Republican leadership’s 2016 tax blueprint would reduce economic output by 0.5 percent by 2026 and add about $3.7 trillion to the nation’s debt over the coming decade. By 2036, the plan would shrink output by between 1 percent and 2.6 percent and add between $4.3 trillion and $5.5 trillion to the debt.

The new TPC estimates are dynamic scores that include the effects of the tax changes on the overall economy and, in turn, the effects of those economic changes on tax revenue. The increase in the debt reflects the revenue loss from the tax cuts and added interest from the additional government borrowing. It updates an analysis TPC published in April.

Measuring tax cuts four ways

TPC measured the cost of the tax cuts four ways. First, it used traditional budget scoring that reflects the way people and companies adjust behavior in response to tax changes, but does not account for the way broad economic changes affect revenues.


It then used three different dynamic models to analyze those overall economic effects on revenues--two internal and one external. All three showed that the House GOP plan would boost growth for the first few years but then slow the economy after that. The problem: Without offsetting tax increases or spending reductions, higher deficits would increase government debt and raise interest rates throughout the economy. Higher borrowing costs would more than wash out the benefits of the tax cuts themselves over the medium and long term.

The three models show somewhat different results, especially in the second decade, but the basic trends are the same: Slower growth and trillions of dollars in additional debt.

Growth effects

TPC started with a Keynesian model that assumes growth is primarily driven by demand. Thus, tax cuts increase demand which leads firms to boost production which raises economic output. Such changes generally last a few years, then disappear.

Because the Keynesian effects are temporary, TPC used a neoclassical growth model to look at longer-run economic changes. It assumes that over time, growth is determined by a mix of productivity and changes in the labor force. Thus, tax cuts that lead firms to increase their capital stock and encourage more people to work or work longer hours would increase economic output.

At the same time, TPC’s partners at the University of Pennsylvania’s Wharton School used their own proprietary macroeconomic model to update their estimates of the House GOP plan. The Penn Wharton Budget Model (PWBM) assumes that households make a series of choices about how much to work and save aimed at maximizing their economic well-being. Tax changes can affect those choices.

What did the modelers conclude?

Shrinking the economy

The TPC models and the Penn-Wharton model projected that the House GOP tax plan would shrink the economy by 0.5 percentage points by 2026. The TPC models found that the proposal would boost output from 2017-2019 then gradually slow the economy. PWBM found the House GOP proposal would increase output through 2021. After that, all the models showed the economy slowing.

What would the plan mean for the debt? Over the first 10 years, there was almost no difference among the models in the effects on the debt, no matter how the plan was scored. Whether TPC used traditional scoring or dynamic scoring, the plan would add about $3.7 trillion to the debt, including interest. Penn Wharton found almost exactly the same thing.

There were noticeable differences in the estimates over the period 2027-2036. Using standard scoring, TPC finds the House GOP plan would add $4.3 trillion to the debt. With macro effects, the plan would worsen the debt even more—by $4.9 trillion.

The Penn Wharton model shows an even more sluggish economy in the second 10 years: It calculates that the House GOP plan would reduce output by 2.6 percent by 2026. Thus, it would slash revenues by $3.4 trillion and, including added interest, raise the debt by $5.5 trillion.

No matter how you cut it, these four economic models show that the 2016 House GOP blueprint would slow economic growth and add trillions to the debt over the next decade and beyond.

https://www.forbes.com/sites/beltway.../#23d6da1e2e91
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Old 08-16-2017, 11:19 PM
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Default Re: House GOP Tax Plan Would Slow Economic Growth, Add Trillions To The Deficit

I would bet dollars to do-nuts there are quite a few rich Dem's, Leftist and those special top dog Progressives lining up to get richer too Wally..

As scruples only go so dang far...
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Old 09-12-2017, 12:16 AM
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Angry Re: House GOP Tax Plan Would Slow Economic Growth, Add Trillions To The Deficit

Uncle Ferd fixin' Granny's wagon so she can sell apples onna street corner...

The US government just passed $20 trillion in debt for the first time ever
For the first time in its history, the US federal government has more than $20 trillion in outstanding debt.
Quote:
The milestone was technically hit Friday, with the Treasury Department settling its accounts at the end of the day with $20,162,176,797,904 of debt outstanding. Of that debt, the Treasury said $14,622,661,213,046 is held by the public, while $5,539,515,584,857 is held by various parts of the government, also known as Intragovernmental Holdings. The amount of debt held by the federal government had been stagnant since March due to the debt ceiling, or the statutory limit of debt the Treasury is allowed to hold at any one time.


Supporters of republican presidential candidate former Massachusetts Gov. Mitt Romney stand next to a national debt clock during a rally at Exeter High School in Exeter, New Hampshire.

Since the limit was reimposed in March, the Treasury used so-called "extraordinary measures" to keep the amount of debt at the roughly $19.84 trillion cap. On Friday, President Donald Trump signed into law a bill that, among other things, suspended the debt ceiling until December 8. That means the Treasury can borrow freely until that date, when the outstanding amount becomes the new debt ceiling and extraordinary measures must begin again unless new legislation is passed.

That led to the roughly $317 billion jump in the amount of debt outstanding, likely to refill the Treasury's ability to use those extraordinary measures in three months if needed. Given the jump in funding, the Treasury could hold out until at least sometime in early March on the extraordinary measures. If all falls right with corporate and individual income tax receipts, that could be extended through the summer of 2018, analysts say.

US debt surpasses $20 trillion - Business Insider
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Old 09-12-2017, 01:20 PM
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Default Re: House GOP Tax Plan Would Slow Economic Growth, Add Trillions To The Deficit

problem our great, great, great, great, great, great grand children will pay it off after the hunting for food is over...


Just whom is fooling whom with 20+ trillion debt.. This is a sign that Govt., has to be stopped... Will not life continue the day after? Feeding big govt., is what created our debt.

far to many got well off while adding up the debt. Let them pay it..
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Old 09-13-2017, 05:29 PM
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Angry Re: House GOP Tax Plan Would Slow Economic Growth, Add Trillions To The Deficit

Granny says, "Dat's right - all dat money an we still in debt...

Feds Collect Record Taxes Through August; Still Run $673.7B Deficit
September 13, 2017 | The federal government collected record total tax revenues through the first eleven months of fiscal 2017 (Oct. 1, 2016 through the end of August), according to the Monthly Treasury Statement.
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Through August, the federal government collected approximately $2,966,172,000,000 in total tax revenues. That was $8,450,680,000 more (in constant 2017 dollars) than the previous record of $2,957,721,320,000 in total tax revenues (in 2017 dollars) that the federal government collected in the first eleven months of fiscal 2016. At the same time that the federal government was collecting a record $2,966,172,000,000 in tax revenues, it was spending $3,639,882,000,000—and, thus, running a deficit of $673,711,000,000.


Individual income taxes have provided the largest share (47.9 percent) of federal revenues so far this fiscal year. From Oct. 1 through the end of August, the Treasury collected $1,421,997,000,000 in individual income taxes. Payroll taxes provided the second largest share (35.9 percent), with the Treasury collecting $1,065,751,000,000 in these taxes.

[center]

The $233,631 in corporate income taxes collected in the first eleven months of fiscal 2017 equaled only 8.6 percent of total tax collections. The $21,172,000,000 collected in estate and gift taxes equaled only 0.71 percent of total taxes collected this fiscal year. (Tax revenues were adjusted to constant 2017 using the Bureau of Labor Statistics inflation calculator.)

https://www.cnsnews.com/news/article...-6737b-deficit
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