Taxes

Mnuchin: Tax Cuts Will Be More Magical Than Ever Before

JM Ashby
Written by JM Ashby

The Treasury's inspector general is investigating the department because secretary Steve Mnuchin promised he would release analysis of the congressional Republican tax plan, but he never did.

Well, Mnuchin has now released the analysis he promised and it's a bad joke.

From Bloomberg:

Treasury Secretary Steven Mnuchin released a long-awaited analysis of the GOP tax plan, saying the Senate proposal would help to generate $1.8 trillion in additional revenue over 10 years, paying for the tax cuts through economic growth.

Gross domestic product would increase by 2.9 percent, as a result of cuts for corporations, so-called pass through businesses and individuals as well as regulatory overhaul, welfare cuts and infrastructure changes, according to the one-page report released Monday. That would lead to revenue generation of $1.8 trillion, more than offsetting the plan’s almost $1.5 trillion cost.

It's easy to say the economy will grow by nearly 3 percent when we've already hit that number multiple times in recent years, but Mnuchin's analysis says the economy will grow by nearly 3 percent every single year for the next 10 years, which has never happened.

All the talk among trillion-dollar fund managers and investors in recent weeks is that the economy will contract in late 2018 or 2019, while some have even said the economy is headed for a recession. The economy is due for a correction, they say, because everything is worth more than it should be and financial risk is piling up.

I'm not an economist and I can't see the future, but I'm pretty sure the economy isn't going to grow in perpetuity and the GOP's tax cut bill won't pay for itself.

It never has.

Mnuchin's new analysis is only one page long, by the way.

  • Aynwrong

    The GOP has turned the concept of a “sucker’s bet” into a political ideology.

  • muselet

    I think it’s fair to say Kevin Drum is gobsmacked by the Treasury analysis:

    There’s literally no analysis at all.… The only plausible scenarios are either (a) nobody was ever doing any serious analysis, or (b) they did a serious analysis and the results were too catastrophic to be released. So instead we got a one-page report cribbing from [the Joint Committee on Taxation] and explaining that tax revenues will rise if economic growth skyrockets. A tenth grader could have written this.

    Welcome to the Trump era, folks.

    i guess Steve Mnuchin was too busy fondling dollar bills to do his homework.

    –alopecia

  • David Greenberg

    Mnuchin now in a dead heat with Paul Ryan, and Mitch McConnell for biggeat bull shit artist of this century. Of course trump has an insurmountable lead. Too bad trump can’t take time out from “all the reports I am reading” to read comments written about him on a websire like this one. His head would explode like a grenade.

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  • Dread_Pirate_Mathius

    Is this the real life?

    Is this just fantasy?

    • And for Mnuchin, it’s easy come, easy go…..

    • muselet

      Caught in a landslide,
      No escape from reality.

      –alopecia

      • Aynwrong

        Well played.