November 27, 2017
How Tax Reform Will Lift the Economy
This weekend, American Action Forum (@AAF) President Douglas Holtz-Eakin and several other prominent economists sent a letter, published in the Wall Street Journal, to Treasury Secretary Steven Mnuchin describing how Congress’s proposed tax reform will boost federal revenues by spurring economic growth. The group contends that the proposed reductions in the cost of capital and the corporate tax rate, among other changes, will encourage greater investment in the U.S. economy, generating economic growth and, as a result, revenues that will partially offset the cost of the reform package.
The letter begins:
“Dear Mr. Secretary:
The present debate over tax reforms proposed by President Trump’s administration and embodied in bills that have passed the House of Representatives and the Senate Finance Committee has raised the basic question of whether the bills are ‘pro-growth’: Would the proposals raise current and future economic activity and generate federal tax revenue that would reduce the ‘static cost’ of the reforms? This letter explains why we believe that the answer to these questions is ‘yes.'”
Click here to read the full letter in the Wall Street Journal.