Oops. Trump's economic advisors concede that the GOP tax bill won't produce the results they promised.
It turns out that a tax scam designed to lavish Wall Street investors and billionaires with tax cuts won't help grow the economy for millions of American families. Even Trump's White House is admitting failure.
A report from the White House Council of Economic Advisers (CEA), released on Tuesday, admits that the U.S. economy will not sustain 3 percent growth for the foreseeable future, even under the rosiest scenario. That's a far cry from their "predictions" before the tax scam became law.
In October 2017, Trump's CEA came out with an analysis showing that cutting taxes for wealthy corporations from 35 percent to 20 percent would increase America's economic growth by three to five percent. Even that analysis fell short of Trump's boast of 6 percent growth. In the end, Republicans slashed the corporate tax rate to 21 percent, but the predictions of growth were way off.
The rest of the bill was focused on lavishing the richest 1 percent of Americans with more than 80 percent of total benefits. Meanwhile, middle-class families are left with higher tax bills and smaller tax refunds. And on top of all of that, promises of broad-based economic growth couldn't hold up to reality.
The 2019 CEA report admits total failure, acknowledging growth will slow to 2.5 percent in 2022, and decrease to 2 percent in 2026. Yet even those numbers are higher than many economists project. The Washington Post reports that many economists predict growth closer to 2 percent in 2020, or perhaps a recession.
Reaction from one group that anticipated this kind of failure was swift and unrelenting.
"Despite Trump and Republican lawmakers' campaign promises, it could not be more clear that the GOP's tax law will not produce the economic growth they claimed it would," Ryan Thomas, spokesperson for Tax March, told Shareblue Media. "Instead, working people and middle-class families are paying the price for corporate tax breaks and for the wealthiest Americans to buy more yachts."
Thomas may have been alluding to Rep. Vern Buchanan (R-FL), who purchased a multi-million dollar yacht on the same day he voted in favor of the Republican tax scam. Or perhaps he was referring to Education Secretary Betsy DeVos, who refuses to fly the American flag on her $40-million dollar yacht.
The Trump White House scammed the public with unrealistically rosy predictions before the tax scam became law. Now that rich corporations and the yacht-owning class are making out like bandits, the truth is emerging.
And to no one's surprise, the truth is not even close to what Trump claimed.
Published with permission of The American Independent.