Treasury Forecasts Tax Reform Will Lead To Longest Period Without Recession In History

One week ago, in its latest assessment of the current state of tax reform in the aftermath of the Senate’s passage of the tax bill, Goldman analysts calculated that while growth impact from tax reform had increased fractionally to around 0.3% in 2018 and 2019 “reflecting the slightly larger amount of tax cuts in the Senate plan following revisions, and our expectations regarding the eventual compromise”, it expected a very modest – if any – boost to US economic growth from tax reform.
Today, in a report prepared by the US Treasury – which as reminder is run by former Goldmanite Steven Mnuchin – and which was meant to bolster the case for the economic growth to be unleashed by the Trump tax cuts, and distract from the spike in deficit funding, the Treasury’s Office of Tax Policy (OTP) calculated that – somehow – the Senate’s version of tax cuts will result in 2.9% real GDP growth rate over 10 years.

This post was published at Zero Hedge on Dec 11, 2017.