According to the Treasury Secretary of the USA the tax cuts are self financing. Imagine that. you can cut taxes but receive all the revenue lost back by increased taxation via a stronger economy.
That occurred under Reagan, and Bush the son and here in OZ under Howard. Yes I am joking but I do member Sinclair Davidson goebelsising about the Reagan tax cuts to this effect. It was as you might expect poor research and attempting to argue black was white.
What occurred in all three cases as anyone literate in economics might expect is the structural budget deficit rose substantially. It will here as well.
There are other effects which have been well documented. It will boost inequality. Trump gets a large tax cuts which his Press Secretary quite obviously lied about.ere as well.
The tax cuts benefit quite the opposite of people Trump 'campaigned for'. When will these people wake up and realise they have been wood ducked? your guess is as good as mine.
The Republicans will be in a bind. It will not take much time to see the line the tax cuts pay for themselves is entirely false.
This means they either allow the budget to blow out when close to full employment or implement spending cuts. The spending cuts would be in the usual areas which again would boost inequality. moreover taking away benefits always leads to electoral back lash.
So Republican have to chose what will have the least effect on their electoral chances next November. blowing the deficits or spending cuts to people who clearly cannot afford it.
Republicans have always been deficit hawks in opposition and not caring about the deficit in government so the odds favour the budget blowing out ( for not much gain.)
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