Friday, December 22, 2017

Ryan: 'Nobody Knows' If Tax Bill Will Pay for Itself

House Speaker Paul Ryan on Wednesday said "nobody knows" whether the Republican tax cuts will spur enough growth to pay for themselves "because that's in the future." Ryan's comment came just hours before House Republicans were scheduled to hold a final vote to pass a bill containing massive, permanent corporate tax cuts, and temporary tax reductions for individuals. Appearing on NBC's Today show, Ryan, R-Wis., was asked if the tax cuts would add to the deficit at all because of the growth the GOP expects it to generate. "Nobody knows the answer to that question because that's in the future," he replied, "but what we do know is that this will increase economic growth."

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This appears at odds with months of messaging from Republican leaders and the White House, however, who have argued that the tax cuts will act as "rocket fuel" for the economy, producing so much growth that the federal government will recoup any initial revenue losses.

"Not only will this tax plan pay for itself, but it will pay down debt," Treasury Secretary Steven Mnuchin said earlier this year, as the tax plan was being negotiated.

Comments

The ink isn't even dry on the bill, and already the Republicans are backing off their original talking points. smh

#1 | Posted by Gal_Tuesday at 2017-12-20 03:49 PM

What's in the future, the immediate future, is Ryan's Republicans taking money from programs for kids, seniors, and the poor to pay for these tax cuts for their donors.

#2 | Posted by Corky at 2017-12-20 04:00 PM

Treasury Secretary Steven Munchkin is a liar and a fool and a Trump puppet.

The 2017 Tax Heist was the perfect crime.

#3 | Posted by donnerboy at 2017-12-20 04:02 PM

Is there anybody in D.C. who is even slightly serious about balancing the budget and then starting to pay down the national debt? Whether R's or D's are in charge, none of them* do anything but give lip service to actual fiscal responsibility. We've seen it over the past few decades with trillions added to what future generations will pay and/or suffer for.

*Maybe Sen. Rand Paul, but fiscal conservatives are pretty much dinosaurs IMO.

#4 | Posted by AKat at 2017-12-20 04:56 PM

Ryan says 'nobody knows' if tax bill will pay for itself

Why do people continue voting for these lying crooks?

#5 | Posted by PinchALoaf at 2017-12-20 07:10 PM

Kansas knows and it won't spur the economy.

www.msnbc.com

California grew just fine in the year the tax hikes took effect ... California's economy grew by 4.1 percent in 2015, according to new numbers from the Bureau of Economic Analysis, tying it with Oregon for the fastest state growth of the year. That was up from 3.1 percent growth for the Golden State in 2014, which was near the top of the national pack.

At the same time, Kansas Gov. Sam Brownback (R) slashed taxes, leading conservatives to predict great things for the state's economy. And yet, here we are.

The Kansas economy, on the other hand, grew 0.2 percent in 2015. That's down from 1.2 percent in 2014, and below neighboring states such as Nebraska (2.1 percent) and Missouri (1.2 percent). Kansas ended the year with two consecutive quarters of negative growth – a shrinking economy. By a common definition of the term, the state entered 2016 in recession. [ ... ]

Kansas's gross domestic product is still less than it was at the end of 2011, said Menzie Chinn, an economist at the University of Wisconsin-Madison, who has been following Kansas's economy. Meanwhile, the economy in the rest of the country continues to expand.

#6 | Posted by LauraMohr at 2017-12-20 08:22 PM

"Kansas's gross domestic product is still less than it was at the end of 2011"

A big reason for that, Laura, is a cycle in the farm industry. Grain prices were sky high prior to 2012.

I agree with your opinion on the tax cut but Kansas has other factors unique to their economy.

#7 | Posted by eberly at 2017-12-20 08:40 PM

Kansas is not unique. They are just different from California. A lot of its neighbors ALSO have a large farm industry. Yet, they had MUCH better results than Kansas.

This article has a graphic that shows the performance of Kansas compared to its neighbors...
www.nbcnews.com

#8 | Posted by gtbritishskull at 2017-12-22 09:15 AM

"House Speaker Paul Ryan on Wednesday said "nobody knows" whether the Republican tax cuts will spur enough growth to pay for themselves "because that's in the future."

Lyin Ryan is just doing what he does. We all know this pile of crap won't pay for itself, Ryan knows. Don't pretend to believe these liars when you know better because we watched this movie when Bush and Reagan did the same things. If you do the same thing over and over but expect differnt results you are probably a Republican.

#9 | Posted by danni at 2017-12-22 09:25 AM

"I agree with your opinion on the tax cut but Kansas has other factors unique to their economy."

Most unique among those is its crazy governor.

#10 | Posted by danni at 2017-12-22 09:25 AM

OK. Let's Take Eddie Munster II at his word. Third in line for the Presidency and he blithely is unaware of the impact of this tax cut on America, his fellow citizens and our economy? WFT?!? For a person in his position to NOT know, or NOT have enough of an idea to provide more of an answer to that question means that Ryan is so far over his head as to be dangerous to our country while still in office...

#11 | Posted by catdog at 2017-12-22 12:05 PM

It's good that they are finally being honest, unlike previous administrations. Every major legislation like this comes down to not knowing if it will do what they say it will. Both sides have media and research mediums that all produce very different numbers and, unsurprisingly, they all paint a picture depending on which side they want to present. Anyone who thinks they know what one bill will do to an economy as large and robust as ours is just a partisan hack who is speaking from opinion.

#12 | Posted by humtake at 2017-12-22 12:13 PM

#7 | POSTED BY EBERLY

That's pathetic of Kansas seeing as grain is already one of the most subsidized industries in the nation. Shouldn't be difficult to do well with a hand out like that.

#13 | Posted by IndianaJones at 2017-12-22 12:53 PM

" Every major legislation like this comes down to not knowing if it will do what they say it will."

Absolute nonsense.

When you disincentivize something, you can expect it to be disincentivized.

Meanwhile, these idiots just discouraged wage growth and reinvestment, while claiming wage growth and reinvestment will both spike. If I didn't already know these are lying SOBs, I'd suspect they all flunked out of Econ 101.

For example, Little Donnie Dark's claim of "the most massive tax cut" are only correct if you use nominal dollars...a method that will get you flunked out of Econ 101 by mid-term.

#14 | Posted by Danforth at 2017-12-22 01:00 PM

Anyone who thinks they know what one bill will do to an economy as large and robust as ours is just a partisan hack who is speaking from opinion.

#12 | Posted by humtake

Funny yall were perfectly willing to take his work that it WOULD pay for itself BEFORE they passed it.

#15 | Posted by SpeakSoftly at 2017-12-22 01:11 PM

"just a partisan hack who is speaking from opinion."

Or a student of history, including recent history.

It's no secret: tax cuts don't pay for themselves. The moron who initially made the claim in the WSJ, Steven Moore, "proved" his point by using non-inflated dollars, which will get you a big fat "F" on your Econ 101 midterm.

The concept being, $5/day was a lot in the Henry Ford days, so $5/day is a lot now, too. So if revenue was $1 Trillion, and 7 years later it was $1.00000000001 Trillion, that proves tax cuts increase revenue! Adjusting for inflation be damned!!!

And yes, it's as stupid as it sounds.

#16 | Posted by Danforth at 2017-12-22 01:17 PM

JCT: New tax law won't pay for itself

Congress's tax scorekeeper said Friday that the tax-cut package President Trump signed earlier in the day won't fully pay for itself through economic growth.

After accounting for macroeconomic effects, the bill would reduce federal revenue by $1.07 trillion over 10 years, according to the Joint Committee on Taxation (JCT).

While that's less than the $1.46 trillion price tag the JCT put on the bill before accounting for economic growth, the committee says the bill still isn't close to being deficit-neutral.

The JCT's report was released hours after Trump signed the tax package into law at the White House. The president said that the tax cuts will be "fantastic for the economy."

thehill.com

#17 | Posted by Gal_Tuesday at 2017-12-22 05:31 PM

Anyone who thinks they know what one bill will do to an economy as large and robust as ours is just a partisan hack who is speaking from opinion.

#12 | Posted by humtake

They why were we lied to by the GOtP for weeks? They said it would.

Don't answer. I already know why. America loves a good flimflam. Because we live in Fantasyland and we just love a good humbug.

And if Dumpster Donnie said it is for the middle class it obviously is not or that it will "pay for itself" and it obviously won't.

Because used car salesman Donnie Dotard is the biggest flim flam artist in the world.

#18 | Posted by donnerboy at 2017-12-22 05:59 PM

Maybe they were listening to that Frank Zappa interview where he said we need to get back to the "who knows?" approach.

#19 | Posted by sentinel at 2017-12-23 02:30 PM

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