With today's announcement by the Trump administration it has become clear that tax" reform" really means tax cuts for wealthy individuals and corporations. There are a few crumbs, such as doubling the standard deduction, for those towards the bottom but most of the benefits go to entities and individuals who already have more cash and assets then they need. There seems to be no requirement that the receipt of this largess be accompanied by increased capital expenditures or R&D expenditures. Even the proponents of this knowledge meant this will create massive deficits on a static basis. But guess how they justify this. You've got it, massive growth leading to wildly increasing tax revenues. It's hard to look into the future when you are incapable of looking at the past and that would be these guys.
You may recall when George HW Bush use the term voodoo economics to describe candidate Ronald Reagan's adoption of Arthur Laffer's economics. This was before his epiphany that if he wished to be on the ticket he needed a kind of deepwater economic conversion. It is dollars to donuts that we will be seeing Arthur Laffer on the TV soon.
For the Republicans it is back to the gospel. Do they really believe that the American voter is gullible enough to believe that the best thing a citizen can do for his country is pay less taxes? And that as a result everyone will have more of everything including benefits supplied by the government without any cost. Yes they do believe that and yes the American voter is gullible enough to swallow that bait.
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