A history lesson: Do tax cuts pay for themselves?Breaking News
tags: tax cuts, Trump
‘It’s not just economic theory but economic history. … The bottom line is we will be able to fill any deficit hole with additional revenues. And we basically saw the same during the Reagan tax cut, frankly the Kennedy tax cut. You can even go back to the Coolidge tax cut. We will be able to raise more revenues,” Rep. Jeb Hensarling, R-Texas, told Bloomberg News in November about a proposed “trigger” to stem tax cuts if the budget deficit unexpectedly widened.
Hensarling, chairman of the House Financial Services Committee, dismissed the trigger as a “uniquely bad idea” because it would leave businesses uncertain about their tax rates. He insisted that the tax changes engineered by Calvin Coolidge, John F. Kennedy and Ronald Reagan proved that big tax cuts can pay for themselves.
He said that if a deficit widened, it could be handled with spending cuts, but he said he was not worried. “If I thought that this would exacerbate the deficit, I would not support it,” he said. But the economic growth that would be created “will be more than enough to make up the static $1.5 trillion [deficit] over 10 years that this is being estimated.”
comments powered by Disqus
- Human Evolution: Walking Upright Evolved at Least 3.6 Million Years Ago—Long Before Modern Humans Appeared
- Why a primary challenge to Trump is likely to fail
- Smog and Disasters Spurred the Laws Trump Wants to Undo
- After Sylvester Stallone Call, Trump Considers ‘Full Pardon’ of Long-Dead Black Boxer
- Disclosed: Journalist helped defuse a budding conflict between the US and Cuba in 1964
- Dartmouth historian Matthew J. Garcia says conservative partisans in Arizona have taken over a civics school he once ran
- Berkeley’s Carolyn Merchant explains what ecofeminism is
- University of Southern California's David Kang says Korea is the only place on earth where the Cold War continues
- W.R. Smyser, U.S. diplomat turned historian of postwar Germany, dies at 86
- Max Boot: North Korea is conning Donald Trump yet again