Thursday, June 8, 2017

Republican Tax Cutters: The Evidence Supports Our Position

As Long as You Ignore the Evidence That Does Not Support Our Position

The grand old supply siders are back with a NYT Op Ed that tries (and fails) to make the case for massive corporate tax cuts.  They want to cut the corporate rate to 15%, and their conclusion is this.

"Mr. Trump should demand that Congress send him a jobs bill this summer that he can sign into law on Aug. 13, 2017. That is the day President Reagan signed his historic tax cut in 1981 at his beloved Ranch del Cielo in Santa Barbara, Calif.
That tax cut and President Kennedy’s before it unleashed two of the longest periods of prosperity in American history, and that is a result Donald Trump should want to replicate."

So what’s the problem. Well there is the Clinton tax increase in 1993. That should have killed the economy according to these and other GOP conservatives. Instead it unleashed the longest and strongest recovery to date. And then Obama passed a spending stimulus. That should have resulted in inflation and high interest rates. Instead it unleashed a recovery even longer, and one that is still going on, so strong in fact that Trump now claims it as his own even though none of it belongs to him.

Business is awash in cash. Corporations don’t need tax cuts, they need demand for their products. That always has and always will be the stimulus for investment.

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