TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Thursday, November 30, 2017

WSJ Op-Ed: How Tax Reform Will Lift The Economy

Wall Street Journal op-ed:  How Tax Reform Will Lift the Economy, by Robert Barro (Harvard), Michael Boskin (Stanford), John Cogan (Stanford), Douglas Holtz-Eakin (American Action Forum), Glenn Hubbard (Dean, Columbia), Lawrence Lindsey ( The Lindsey Group), Harvey Rosen (Princeton), George Shultz (Stanford University), John Taylor (Stanford University):

The present debate over tax reforms proposed by President Trump’s administration and embodied in bills that have passed the House of Representatives and the Senate Finance Committee has raised the basic question of whether the bills are “pro-growth”: Would the proposals raise current and future economic activity and generate federal tax revenue that would reduce the “static cost” of the reforms? This letter explains why we believe that the answer to these questions is “yes.” ...

  • Reducing Corporate Tax Rates, as Proposed, Will Increase Economic Activity ...
  • Lowering Individual Tax Rates Also Offers Generally Positive Economic Effects ...
  • Confirming a Pro-Growth Objective Is Important for the Path Forward

https://taxprof.typepad.com/taxprof_blog/2017/11/wsj-op-ed-how-tax-reform-will-lift-the-economy.html

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Comments

Right wing economists made the same promises for the Reagan and Bush Tax cuts--that they would cause the economy to grow faster than the national debt and debt to GDP would drop. We all know how that turned out.

Posted by: Debt | Nov 30, 2017 1:06:39 PM

At the bottom they take it all back and admit that *this* tax bill won't increase growth. Their assumptions don't map onto either the Senate or House bill.

"In the foregoing analysis, we assumed a revenue-neutral corporate tax change. Deficit financing of part of a reduction in taxes increases federal debt and interest rates, all else equal...."

Posted by: Assumptions | Nov 30, 2017 1:18:16 PM

Debt (if that's you're real name): "We all know how that turned out."

Would you mind explaining to the audience how Obama administration policies, specifically tax increases and increased regulations, grew the economy faster than previous years and decreased the Debt/GDP ratio?

When last I checked, that ratio was as high today as anytime since 1947...

Posted by: MM | Dec 3, 2017 11:19:56 AM