New analysis: Republican tax cut plan will leave us $1.3 trillion in the hole

New analysis: Republican tax cut plan will leave us $1.3 trillion in the hole

Republicans insist that their massive tax giveaway to the wealthy will spur so much growth, the middle class won’t even notice they’re being royally screwed. But a third group, the nonpartisan Tax Policy Center, has stepped up to say there’s no way this plan will pay for itself.

The Tax Policy Center found that the economic growth the bill would create would add $169 billion in additional tax revenue over the next decade. But that would be far outweighed by $1.436 trillion in revenue losses over the decade due to the bill’s tax cuts, leaving the bill with a net addition to the deficit of $1.266 trillion.

The Tax Policy Center found that the House Republican tax-cut package would add 0.6 percent to U.S. gross domestic product in 2018 but just 0.3 percent in 2027. […]

“These economic benefits would be modest because most tax reductions would accrue to high-income households, who spend a smaller share of any increases in after-tax income than lower-income households,” the Tax Policy Center said.

This is the third analysis to blow a hole in the Republicans’ talk of massive growth. The Penn Wharton Budget Model at the University of Pennsylvania found that it would leave a “loss in revenue of between $1.470 trillion and $1.697 trillion” and the Tax Foundation, a conservative think tank Republicans love, says it will add $1 trillion to the national debt. Which leads to a really great point from Gene Sperling, former director of the National Economic Council and assistant to the president for economic policy under Presidents Clinton and Obama.

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Imagine: GOP allows deficit increase of $1.5 trillion and yet Senate plan will raise taxes on 50% of households when fully implemented. How beholden must you be to be top 1% & major companies to blow $1.5T hole in deficit & still raise taxes on half of US households? https://t.co/jTlVwyeywx

— Gene Sperling (@genebsperling) November 21, 2017

How beholden to the super rich, indeed.

Jam your senators’ phone lines at (202) 224-3121. Tell them to vote “no” on the Republican tax bill.

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