November 6, 2017
A few days ago in We Want Fair, Not Fraudulent Tax Reform, I promised some links to pieces showing the GOP Tax proposal to be unfair and fraudulent. Here they are — and there may be more. It’s a stinko plan.
Background on U.S. Taxes
WaPo’s Wonkblog on The state of the American tax system, in 8 charts,
Overall on the GOP Tax Plan
Jason Furman analysis (Furman is a Professor at Harvard’s Kennedy School and also affiliated with the Peterson Institute for International Economics). A few headlines:
- Not a time for tax cuts,
- the House Bill is not well-designed,
- Large increase in the deficit,
- New pass-through loophole is complicated and distortionary,
- Cutting the corporate rate to 20 percent is more likely to reduce wages than to increase them,
- Cutting the corporate tax rate to 20% is likely to reduce GDP, etc.
Paul Krugman (NYT, Nobel Prize Winner in Economics) on the ten lies that Republicans are telling about their tax plan.
Dylan Matthews in Vox on The Republican Tax Bill, Explained.
Effect on the Deficit
Tyler Cowen, conservative, influential blogger at Marginal Revolution, damns with faint praise: The plan as a whole is a reckless expansion of the deficit, but if that is going to happen anyway this is one of the better ways to do it.
Fortune Magazine on Why Trump’s Tax Reform Won’t Fix America’s Federal Budget Mess.
Bloomberg on Most Economists Agree: Trump Tax Plan Will Widen Budget Deficit. Kicker: “Tax code simplification is a laudable goal, but it is not clear whether very many tax loopholes will be closed,” said Thomas Fullerton, professor of economics and finance at the University of Texas at El Paso. “Unfortunately, the risk of a widening deficit is pronounced.”
Joint Committee on Taxation analysis, the upshot of which Kevin Drum headlines as Surprise! The Republican Tax Bill Mostly Helps the Very, Very Rich.
Tax Policy Center analysis, whose conclusion is this “In 2018, all income groups would see their average taxes fall, but some taxpayers in each group would face tax increases. Those with the very highest incomes would receive the biggest tax cuts.“ Read the NYTimes report on the report here.
WaPo’s Wonkblog on Winners and Losers in the GOP Tax Plan.
Targetting of Harm to Blue States