Drudge Retort: The Other Side of the News
Wednesday, December 20, 2017

Independent analysts agree the Republican bill would deliver a tax cut for the majority of Americans. In 2018, middle-income households -- those earning $49,000 to $86,000 -- will see an average tax cut of $930 on average, according to the nonpartisan Tax Policy Center. Those who make a bit more but might still plausibly be called middle class -- families earning $86,000 to $149,000 -- will get back even more, with an average tax cut of just over $1,800. No one in the middle class is going to turn up their nose at an extra thousand bucks. But critics have been pointing out that the tax bill could have done much more for middle earners. That $900 pales in comparison to the average $51,o00 tax cut that Americans in the top 1% of earners -- those taking home $733,000 and up -- will reap. Overall, the 1% will reap more than 20% of the total value of the tax cut, roughly the same amount as Americans in the bottom 60% of the income distribution, the Tax Policy Center found.

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The tax cut goal is to boost the economy -- leading to higher incomes and better job opportunities for millions of American workers... . On Monday, the Tax Foundation, a right-leaning think tank, said it believes the bill will create 339,000 more jobs and boost GDP growth to by 0.29 percentage points a year, to 2.13% from 1.84% over the next decade.

Even the Tax Foundation, generally regarded as the most sympathetic of the various Washington organizations that crunch tax numbers, doesn't think the tax cut will boost growth enough to cover its cost to the federal budget. The group forecasts that the tax cut will leave Americans with an extra $400 billion in debt to pay back a decade from now.

Another group, the Committee for a Responsible Federal Budget, said it thinks the bill could cost the U.S. as much as $2.2 trillion.

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More from the article:

What you should know: The plan could backfire.

The more debt the bill ultimately creates, the less it is likely to add to the economy. That's because government borrowing competes for investment dollars with private industry. If the government ends up having to borrow too much, interest rates will rise and choke off private companies' ability to raise money to invest in new equipment or to add jobs.

Those concerns have led many analysts to conclude that the bill may ultimately generate little if any growth at all. Other reviews of various iterations of the Republican tax bill, including one by the Joint Committee on Taxation, Congress's budget scorekeeper, pegged the economic growth to be anywhere from one-third to one-tenth of the Tax Foundation's forecasts.

#1 | Posted by Gal_Tuesday at 2017-12-20 03:14 PM | Reply

What Bush I once called voodoo economics and has often been referred to as trickle down economics, in the age of Trump will become known as tinkle down economics.

#2 | Posted by Gal_Tuesday at 2017-12-20 03:24 PM | Reply

The tax scam raises taxes on the middle class to pay for cuts for multinational corporations and the 1%. The next recession is right on track.

#3 | Posted by 726 at 2017-12-21 08:03 AM | Reply

Who cares? It's a done deal. The Corporations got their billions, the rich got their billions, Trump got his hundreds of millions, and we got our $20 dollars.

Huzzah!

So sad for our kids and the poor and the sick and the disadvantaged.

They are the ones who are going to have to pay for it. They should have lived their lives right (or won the sperm lotto) and they wouldn't have to worry about it.

#4 | Posted by donnerboy at 2017-12-21 02:56 PM | Reply

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