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"Economists expect a $1.5 trillion income tax cut package, which came into effect in January, will spur faster economic growth this year and lift annual GDP growth close to the Trump administration's 3 percent target."
I mean, such a huge tax cut should stimulate the economy. Of course, the economy was doing well anyway, but the Republicans were told by the Big Money Donors to get them that tax cut, or the spigot would turn off. We had several threads making much of how a few, a very few, companies were going to give their employees bonuses. Those threads soon petered out, as it became evident that the corporations would rather keep the money, thank you very much.
Of course, there are so many variables to consider. The National Debt is rising, and is expected to rise more; Mr. Trump keeps wavering on tariffs, causing uncertainty in the stock market; inflation may be creeping back in to the equation, helped by a rise in gas prices (they are dropping again, but I fear they will soon head back up; you can't trust OPEC or Russia to keep their word about increasing production). We can also expect higher interest rates, which of course will add to our debt. We can expect all sorts of things, some good, some not so good.
For some reason, I am reminded of what Coach Darrell Royal said many years ago, when asked about why his Wishbone quarterbacks don't throw more often: "When you throw a pass, three things can happen, and two of them are bad".
Probably applicable here: there are several ways the economy may move in the next year, and of those several ways, most are probably bad. Yet, we shall hope for the best.
This means the US Debt will grow faster due to the reduced income coming into the Treasury's coffers, because corporations aren't paying enough taxes to keep the country running. The hole will get deeper and deeper. The sole reason is that the GOP's smoke and mirrors BS estimate of growth was pretty much impossible. Analysts said it was not realistic and the GOP that pushed the tax cut also knew it was unrealistic.
They knew it would dig the nation deeper and deeper into dept. But they wanted to give corporations permanent tax cuts, even knowing this could bankrupt the country. What did the GOP do - they made up a story about expecting huge growth and they said this huge growth would make up for the tax cut. They knew it wasn't true. This is why some of them are retiring. The US debt is getting deeper and deeper and they will be retired and won't have to deal with it.
This is the party that's supposed to be fiscally responsible. They gave massive tax cuts to huge corporations, knowing that economic growth would NOT make up the difference. They gave a few pennies of tax cuts to the people to keep them quiet, while they gave massive tax cuts to billionaires and corporations, and made those permanent. They sold us out.
Can't say as I care much, but the NeverTrumpers have evidently discovered they are oh-so-interested in national GDP. So they must have been alarmed and outraged when they saw growth go to 1.2% in Q1, 2017. And frightened witless when it went to -1.0% in Q1, 2016
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