Taxes

JCT: No, Tax Cuts Still Won’t Pay For Itself

JM Ashby
Written by JM Ashby

In addition to the other bleak reports released yesterday, the congressional Joint Committee on Taxation (JCT) also released an updated analysis of the GOP tax cut plan that found it will come nowhere close to paying for itself.

The economic growth resulting from the bill would lower the measure's revenue loss by more than $400 billion over 10 years. However, the bill would still cost about $1 trillion over a decade, even after accounting for those revenues, according to the Joint Committee on Taxation (JCT). [...]

House Ways and Means Committee Chairman Kevin Brady (R-Texas) said Monday that he thinks the analysis reflects the fact that JCT "historically is a very conservative estimator of growth."

If Kevin Brady wants to talk about the historical record, I'm all for it. We can talk about the fact that tax cuts have never produced enough economic growth to pay for itself.

In very recent history, tax cuts actually reduced economic growth. The economy of Kansas shrank in 2015, 2016, and 2017. State lawmakers recently repealed former Governor Sam Brownback's signature tax cuts and it's the first real opportunity they've had in years to turn the state's economy around.

Republicans in Congress want to replicate the Kansas model in 2018 by passing massive spending cuts to follow up their massive tax cuts.

There's no reason to think the country won't see the same results as Kansas did.

  • muselet

    Given a choice between an analysis conducted by JCT and the bleatings of Kevin Brady, well, my money (you should pardon the expression) is on JCT.

    Unfortunately, the entire GOP is full of ignoramuses like Brady, stubbornly asserting that tax cuts will more than pay for themselves this time! Kansas was just the latest anomaly in a list of anomalies going back to Ronald Reagan.

    So here we go with the umpteenth experiment to see if trickle-down economics is more than a shell game meant to steal from the poor to give to the rich. (SPOILER: it’s not.)

    –alopecia

    • Aynwrong

      All those times trickle down bullshit economics utterly failed to deliver were obviously an endless series of isolated and completely disconnected coincidences, apropos of nothing.

      Stuff works, I’m telling ya…

      • muselet

        If I may be forgiven for quoting my own joke: Trickle-down works. It’s just not money that trickles down.

        –alopecia

  • Aynwrong

    To repeat myself from yesterday, the GOP has turned the concept of a “sucker’s bet” into an ideology.

  • Badgerite

    David Brooks just looked up from having fallen through three floors from attic to basement and decided maybe his house isn’t ……sound. Noooooo? Ya think?
    The GOP is treating the United States like some company that has been subjected to a hostile takeover. They are now selling off the parts to get as much money out of it before it collapses. They suck.
    Independent Lens on PBS ran a piece on Sandy Hook last night on our local channel. David Brooks only now realized that there is rot going on in the GOP? It was hard to watch that and know what happened in Las Vegas. The GOP doesn’t even pretend to give a crap anymore. Absolute power corrupts absolutely. They have too much power right now and their behavior shows that.

    • I find it more frustrating than anything else when guys like David Brooks come to their senses. Better late than never, but while beingg late to reality people like David Brooks made all of this possible. It’s less a road to Damascus moment and more That Mitchell and Webb Look “Are we the baddies?”

      • Badgerite

        Exactly. But….it’s an improvement, nonetheless.

        • MadJuana

          It seems like an improvement, but it isn’t really because he will somehow turn it into some kind of weird both-sides thing.

  • They never learn.

    Or.

    They know, but just don’t care.

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