Don’t believe your eyes

Yesterday, Secretary of the Treasury Steve Mnuchin testified in front of Congress that the tax cut of December, 2017 would pay for itself before ten years. Really?

This is after the nonpartisan Congressional Budget Office said the tax cut would increase the national debt by $1.5 trillion before it was signed.

This is after we have witnessed the deficit increasing over previous projections the past two fiscal years.

This is after the president said the tax cut would increase GDP growth to 4%. It rose from 2.3% in 2017 to 2.9% in 2018, but softened to 2.1% in 2019.

This is after previous studies that said no tax cut has ever paid for itself. In fact, it is quite nervy to say it would – think of that statement. “It will pay for itself.”

It takes even more nerve to sit in front of Congress and say that it still will, now that the sugar rush has died off. Companies tended to buy back shares with the tax gain rather than invest the gain.

In short, the tax cut borrowed from our future to make a pretty good economy a little better for a little while. For Mnuchin to follow his boss’ lead and ignore facts is troubling. We have a debt and deficit problem that is being downplayed. To solve a problem, it requires admitting we have one.

11 thoughts on “Don’t believe your eyes

  1. A thoroughly ridiculous thing for him to say under any circumstances! But, do you expect honesty or good sense from anybody in this administration? As you say, tax cuts have never paid for themselves … the rich get richer, the poor get poorer, and the nation gets even deeper in debt. It’s one of those things that looks good on paper, but when you factor in humans, it never works. “Trickle down” economics most often trickles up!

    • Jill, thanks. It is amazing that he would still say this after everything. There have been four studies on trickle down economics and each showed they do not work. The latest example in Kansas was a debacle.

      What is interesting, Mitch McConnell had the nonpartisan Congressional Research Service report that showed it does not work buried before the 2012 election. Keith

      • It is amazing … it’s almost as if he (and others in Trump’s sphere) are living in some alternate universe where reality has no role.

        Yes, I had forgotten that … Mitch would have done most anything, I think, to thwart Obama, just as he will do anything including but not limited to, lie cheat and steal, to pander to Trump. The may wears his brain on the wrong end of his body, I do believe.

      • Jill, the president has only had to be accountable to one person – his father. As a result, he has gotten away with far too much corruption and lying in his career. McConnell is just hyper-political. If Trump became too toxic, McConnell would drop him. Don’t ask me how much more toxic Trump can become? Keith

    • Roger, it takes a lot of hubris to say such. If I recall the figure correctly, the best a tax cut has ever done is in the 25% range in terms of spurring enough growth to pay for some of the cut. 25% is a far cry from 100%. Keith

    • Janis, people follow the lead of their boss. Their boss has shown that lying and exaggeration is acceptable. Mnuchin should have been called on the carpet. Keith

  2. Note to Readers: When I see regimes perpetuating lies, I think of an interview with Syrian leader Bashar al-Assad. When asked if he had takes deployed in Homs, he flatly denied it, as video was playing behind him of Syrian tanks rolling into Homs. Art imitating life with the Wizard of Oz telling people to ignore the man behind the curtain is telling.

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