Just How Much Economic Growth Will Tax Reform Give Us?

Just How Much Economic Growth Will Tax Reform Give Us?
AP Photo/Andrew Harnik

My late-night deficit-hawking has provoked some friendly pushback, so I wanted to briefly explain my thinking on the question of tax cuts and economic growth. I spelled out my approach more completely in a piece last month, in the context of the House's tax bill. Basically, the challenge of using dynamic scoring on a deficit-financed tax cut is twofold. First, how does the tax cut affect the economy? And second, how does the increased deficit affect the economy? The answers to these questions determine how much revenue the tax loses (or in rare circumstances gains). Expert opinion tends to break down on the expected ideological lines ...

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