Supply-Side Economics

[Rajoo]

Originally Posted by whell

This thread is about supply side economics, not about tax breaks for the middle class. Sorry you got lost.

This thread is about hog wash. Tax breaks for the middle class, that's truly Fake News. I spent mine at Starbucks in Oakland yesterday, $5.00 for a medium latte. Here is the reality.

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.

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.

The bolded text is a reality check. What good does a measly tax cut do when the economy goes into a recession and incomes get depressed due to unemployment. Anyone remember the Reagan economic miracle, aka Woodoo Economics?

http://time.com/money/5071344/gop-ta...-middle-class/