Wall Street Journal Weekend interview with Pennsylvania Senator Pat Toomey, "the Senate's leading intellectual force for growth economics" --
There will be “estimates all across the board,” he continues [for growth effect of tax cuts]. “Joint Tax will have theirs, and private economists will have theirs. But just ask yourself at a gut level: Do you think it’s plausible that we can go from the 1.9% [growth] that CBO currently projects, to 2.3% average growth over the next 10 years, if we do a great job with the tax-reform bill?”
The fact that Toomey holds, and sold the tax cut to his colleagues on the basis of, a high confidence that this particular tax legislation will increase growth by 0.4 percentage points annually -- with all the other things that could happen and the huge prospect for changes in tax behaviour -- is a perfect illustration of the economic philosophy of the Republican party. Pull some levers, and 0.4 percent more widgets come off the assembly line!
There will be “estimates all across the board,” he continues [for growth effect of tax cuts]. “Joint Tax will have theirs, and private economists will have theirs. But just ask yourself at a gut level: Do you think it’s plausible that we can go from the 1.9% [growth] that CBO currently projects, to 2.3% average growth over the next 10 years, if we do a great job with the tax-reform bill?”
The fact that Toomey holds, and sold the tax cut to his colleagues on the basis of, a high confidence that this particular tax legislation will increase growth by 0.4 percentage points annually -- with all the other things that could happen and the huge prospect for changes in tax behaviour -- is a perfect illustration of the economic philosophy of the Republican party. Pull some levers, and 0.4 percent more widgets come off the assembly line!
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