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| Economy |
| GOP Tax Framework Could Raise GDP By 5%, Wages By 7% |
| 2017-10-22 |
| [Free Beacon] President Donald Trump's tax reform framework could raise GDP by as much as 5 percent and wages by as much as 7 percent, according to a new study from Boston University economists. "We find that, depending on the year considered, the new Republican tax plan raises GDP by between 3 and 5 percent and real wages by between 4 and 7 percent," the economists explain. "This translates into roughly $3,500 annually more annual real take-home pay for the average American household." Economists believe this growth can happen due to the plan's aim to reduce the marginal effective corporate tax rate from 34.6 percent to 18.6 percent, which they believe will grow the capital stock by 12 to 20 percent. While critics of the plan have said the tax cuts will add costs to the economy, the Boston University economists say the plan is essentially revenue neutral due to the economy's expected expansion. They point out that closing corporate tax loopholes helps keep the plan revenue neutral and increased revenues are a result of broadening the tax base. The study also says every American can benefit from this tax reform framework. |
| Posted by:Besoeker |
| #4 Regardless, wages will be forced to go up due to inflation. |
| Posted by: gorb 2017-10-22 20:44 |
| #3 Yes, I continue to have my doubts about a tax overhaul. The chances for it happening this year look quite bleak. Next year is a 'nothing gets done' election year, so..... |
| Posted by: Besoeker 2017-10-22 18:22 |
| #2 The people who own the deep state want lower wages and higher rents. Look for those sort of things to pass. |
| Posted by: Bright Pebbles 2017-10-22 17:09 |
| #1 Which, IMO, means it'll never be passed. |
| Posted by: g(r)omgoru 2017-10-22 14:23 |