Let’s have a little poll. How much net economic growth per year in the United States will be produced by the tax reform soon to be enacted into law?
- 10%
- 1%
- .1%
- Zero
- Negative growth
I think the answer is C. It will produce a little growth but nothing like what its proponents have claimed.
A., but you won’t see it outside of charts and graphs because it won’t trickle down to these levels
Corporate cash piles will grow larger, glasses raised in toasts to a prosperous new year. If the money is used at all, it will be to increase automation in every sector.
If it sounds like I’m disappointed, I am. But on the other hand, corporations don’t pay taxes anyway, they evade them, so high rates only drive money overseas.
I’m not familiar with the changes. I probably would have opined btw/ 0 and 1 percent several weeks ago, but assume that from some of the changes I’ve heard proposed (though I don’t know if they are in the operating bill), that inefficiencies are being introduced.
It looks like Democrats made sure the interest of the not yet wealthy were given more attention.
That’s not economic growth; it’s expanding their balance sheets.
Maybe C. It will be hard to ferret out as other factors are much more important for economic growth. Expect a lot of studies showing that it did, or did not, help. (I think we will see at least a 10% increase in income growth for the top 0.1%.)
Steve
Maybe they could expand my balance sheet then.
I don’t think there’s a practical difference between C and D since it’s not possible to measure any effect with that level of precision. So I’ll say essentially zero.
Brian “Emily Latella” Ross said it would be 100%. People went nuts and Jake Tapper soiled his pants.
Then ABC issued a statement…..did we say 100%? We meant .1%. Sorry………
I go with C.
E. My expectation is most of the gain from the tax cut is going to corporations which either sit on the money or pay it out as increased dividends to reasonably affluent people who are probably also going to sit on the money or dump it into prestige real estate. No noteworthy capital spending, in other words, so not much impact on productivity or job growth. Meanwhile, we’re getting cutbacks in R&D spending, and encouraging increased coal use rather than cheaper natural gas or renewable energy consumption.
And in a couple years, I’d expect to see healthcare and pollution issues, Also we’re seeing basically zip for infrastructure spending.