Olde Hornet
Well-Known Member
Legs in the air or bend over
Trump's Treasury pick just doubled down on a budget trick that will steal from an entire generation
https://www.yahoo.com/finance/news/trumps-treasury-pick-just-doubled-200604495.html
On Thursday, President-elect Donald Trump's pick for US Treasury Secretary took the hot seat in Washington, and during his confirmation testimony he endorsed a classic budget trick that could steal from an entire generation.
"We do believe in dynamic scoring and with the appropriate growth," said Treasury nominee Steve Mnuchin. "I think we want to make sure that tax reform doesn't increase the deficit."
Those two sentences actually contradict each other because "dynamic scoring" is just a fancy way of justifying massive increases in the national debt. Increases that would result from Trump's plan to spend $500 billion on infrastructure development while carrying out dramatic tax cuts.
According to analysis from the Tax Policy Center, that tax plan would exacerbate income inequality and deprive the government of much-needed cash for operations:
"His proposal would cut taxes at all income levels, although the largest benefits, in dollar and percentage terms, would go to the highest-income households. The plan would reduce federal revenues by $9.5 trillion over its first decade before accounting for added interest costs or considering macroeconomic feedback effects. The plan would improve incentives to work, save, and invest. However, unless it is accompanied by very large spending cuts, it could increase the national debt by nearly 80 percent of gross domestic product by 2036, offsetting some or all of the incentive effects of the tax cuts."
Trump's Treasury pick just doubled down on a budget trick that will steal from an entire generation
https://www.yahoo.com/finance/news/trumps-treasury-pick-just-doubled-200604495.html
On Thursday, President-elect Donald Trump's pick for US Treasury Secretary took the hot seat in Washington, and during his confirmation testimony he endorsed a classic budget trick that could steal from an entire generation.
"We do believe in dynamic scoring and with the appropriate growth," said Treasury nominee Steve Mnuchin. "I think we want to make sure that tax reform doesn't increase the deficit."
Those two sentences actually contradict each other because "dynamic scoring" is just a fancy way of justifying massive increases in the national debt. Increases that would result from Trump's plan to spend $500 billion on infrastructure development while carrying out dramatic tax cuts.
According to analysis from the Tax Policy Center, that tax plan would exacerbate income inequality and deprive the government of much-needed cash for operations:
"His proposal would cut taxes at all income levels, although the largest benefits, in dollar and percentage terms, would go to the highest-income households. The plan would reduce federal revenues by $9.5 trillion over its first decade before accounting for added interest costs or considering macroeconomic feedback effects. The plan would improve incentives to work, save, and invest. However, unless it is accompanied by very large spending cuts, it could increase the national debt by nearly 80 percent of gross domestic product by 2036, offsetting some or all of the incentive effects of the tax cuts."
