YAHOO finance did an interview with Art Laffer.
www.yahoo.com/…
“ “It takes a while for that growth to compound and really make a difference in tax revenues, but it will happen,” he said. “When that does happen — and remember it’s going to happen with payroll taxes, property taxes, income taxes, all the other taxes — we’ll be in great shape from this tax cut and we should go even further.”
Laffer said he supported the idea of further cutting rates on capital gains, or investor profits from sales of stocks and other financial securities. President Trump has said he expects his tax cuts and deregulation agenda will spur 3% economic growth for multiple years — a claim almost universally panned by economists — but Laffer thinks it could be even higher.
“If we get 4% growth over the next couple of years we’ll have revenues way above what anyone ever expected,” he said.”
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Those are pretty much the same lies he was spouting 35 years ago to push Reagan’s tax cuts.
(to be fair Reagan had an OK economy as long as he fed it by running up massive deficits)
He has been wrong for more than 3 decades, but the interviewers never pointed that out and never asked him what has changed to turn his lies into the truth.
(to his credit he did say that trade wars are stupid)
The economy is going to take off?
We are about to break the record for the longest economic expansion in history and he thinks it will not only keep going but will accelerate?
Most economists predict the opposite.
www.washingtonpost.com/…
“In an attempt to boost growth, Trump passed massive tax cuts, scaled back regulations and boosted government spending in his first year in office. The result is a large-scale stimulus that appears to be causing growth to rise but at a cost: Trump has also triggered an unprecedented expansion of the federal deficit.
“The U.S. economy is projected to grow considerably faster than potential for a few years,” the International Monetary Fund wrote in its World Economic Outlook released Tuesday. But “the U.S. tax reform will reduce growth momentum starting in 2020.” ”
“The IMF predicts U.S. growth will hit 2.9 percent this year and 2.7 percent in 2019, a level of growth that hasn't been achieved since 2006. But the IMF also predicts the United States will be the only advanced economy in the world to have its debt-to-GDP ratio get worse in the next five years as the government budgets become even more unbalanced, adding to the debt.”
“There's less reason to behave like it's 'morning in America' than 'happy hour in America,'” wrote Morgan Stanley in a research paper released Tuesday. “The feel-good aspects of [fiscal stimulus] appear at or nearly in the price of U.S. markets, whereas the downsides are less accounted for.”
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Downsides?
To paraphrase Leona Helmsley, those are for the little people.