georgephillip
Senator
There are three main lessons we can learn from those nearly one year-old cuts:
1. The cuts are not leading to the promised investment boom.
2. Additional demand generated by the cuts is spurring growth and reducing the unemployment rate.
3. The Feds interest rate hikes are slowing the economy unnecessarily.
https://www.counterpunch.org/2018/11/02/lessons-from-the-trump-tax-cut/
"Taking these in turn, it is pretty clear at this point that we will not see the investment boom promised by proponents of the tax cut.
"This point really has to be front and center in any discussion of the benefits of the tax cut.
"By far, the largest chunk of the tax cut was the reduction in the corporate tax rate from 35 percent to 21 percent, along with various other measures lowering corporate taxes...."
"The data for the first three quarters of 2018 indicate that this is not likely to happen.
"Investment is up modestly, but we’re clearly not seeing the promised boom.
"In the first three-quarters of 2018 investment was 6.7 percent higher than in the same period last year.
"By comparison, investment rose by 6.9 percent in 2014 and increased at a 9.1 percent annual rate from 2010 to 2012.
"Much of the growth we have seen this year is not from tax cuts, but higher world energy prices spurring a boom in oil and gas drilling.
"If we pull out energy-related sectors, the rise in investment would be even less."
https://www.washingtonpost.com/busi...-so-far/?noredirect=on&utm_term=.679b04d885ea
1. The cuts are not leading to the promised investment boom.
2. Additional demand generated by the cuts is spurring growth and reducing the unemployment rate.
3. The Feds interest rate hikes are slowing the economy unnecessarily.
https://www.counterpunch.org/2018/11/02/lessons-from-the-trump-tax-cut/
"Taking these in turn, it is pretty clear at this point that we will not see the investment boom promised by proponents of the tax cut.
"This point really has to be front and center in any discussion of the benefits of the tax cut.
"By far, the largest chunk of the tax cut was the reduction in the corporate tax rate from 35 percent to 21 percent, along with various other measures lowering corporate taxes...."
"The data for the first three quarters of 2018 indicate that this is not likely to happen.
"Investment is up modestly, but we’re clearly not seeing the promised boom.
"In the first three-quarters of 2018 investment was 6.7 percent higher than in the same period last year.
"By comparison, investment rose by 6.9 percent in 2014 and increased at a 9.1 percent annual rate from 2010 to 2012.
"Much of the growth we have seen this year is not from tax cuts, but higher world energy prices spurring a boom in oil and gas drilling.
"If we pull out energy-related sectors, the rise in investment would be even less."
https://www.washingtonpost.com/busi...-so-far/?noredirect=on&utm_term=.679b04d885ea
