A Fiscal Disappointment – Of Tax Reform & Growth Fairies

Jon Alternative Media, Blogosphere, Economy, Fiscal Policies, Government

I encourage you to take a few minutes to review my previous analysis of the effectiveness of tax cuts on the economy.
Bull Trap – The False Promise Of Tax Cuts 3-Myths About Tax Cuts It’s The Debt, Stupid The Committee For A Responsible Budget penned after the passage of the tax bill:
‘The House approved debt-financed tax cuts based on predictions of magical economic growth that defy history and all credible analyses.
Tax reform should grow the economy and not add to the debt. Unfortunately, lawmakers are assuming faster economic growth will pay for that debt increase when there is no evidence it will cover more than a fraction of the tax bill’s costs.
The last time Congress added 10-figures worth of tax cuts to the debt in 2001, it blew a hole in the budget and helped erase our surpluses – despite claims that economic growth would cover the cost.
The growth fairy did not appear then, and it would be unwise to assume she will this time around.

This post was published at Zero Hedge on Nov 19, 2017.