TaxProf Blog

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

Friday, January 4, 2019

Krugman: The Trump Tax Cut Is Even Worse Than You’ve Heard

New York Times:  The Trump Tax Cut: Even Worse Than You’ve Heard, by Paul Krugman:

The 2017 tax cut has received pretty bad press, and rightly so. Its proponents made big promises about soaring investment and wages, and also assured everyone that it would pay for itself; none of that has happened.

Yet coverage actually hasn’t been negative enough. The story you mostly read runs something like this: The tax cut has caused corporations to bring some money home, but they’ve used it for stock buybacks rather than to raise wages, and the boost to growth has been modest. That doesn’t sound great, but it’s still better than the reality: No money has, in fact, been brought home, and the tax cut has probably reduced national income. Indeed, at least 90 percent of Americans will end up poorer thanks to that cut.

Let me explain each point in turn. ...

Krugman 1

Krugman 2

(Hat Tip: Ted Seto)

https://taxprof.typepad.com/taxprof_blog/2019/01/krugman-the-trump-tax-cut-is-even-worse-than-youve-heard.html

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Comments

Professor Krugman needs to say something new now and then

Posted by: Mike Livingston | Jan 4, 2019 4:18:09 AM

I'm surprised Prof. Krugman isn't screaming like the rich pig he is, since his federal deductions have been capped and he'll be paying a hefty bill to Uncle Sam this year.

Willful ignorance, you'd think smart people could avoid that sort of thing. The same FRED source shows personal tax receipts up hundreds of billions:

https://fred.stlouisfed.org/series/A074RC1Q027SBEA

And we haven't even started collecting for 2018 yet!

Posted by: MM | Jan 4, 2019 6:43:50 PM

Mr. Livingston's incessant "comments" constitute something "new"?

Posted by: taxcounsel | Jan 5, 2019 1:29:03 PM

Krugman trying to fight his way back into the headlines and relevancy. @taxcounsel, Mike isn't being paid for his opinions, and so his consistency and ideology isn't an issue as rich for public comment as Paul's is. Grow up.

Posted by: ruralcounsel | Jan 7, 2019 3:35:04 AM