Gary Cohn, chief economic adviser to President Trump, said on Thursday during a press briefing that the new Trump tax reform plan is aimed at making sure they give middle-class Americans a tax cut, even though the wealthiest Americans and corporations stand to benefit the most from lowering the tax rate.
The framework for President Trump’s tax plan includes a plan that reduces individual income tax rates into 3 brackets at 12, 25, and 35 percent, doubles the standard deduction, and lowers the corporate tax rate to 20 percent while eliminating the estate tax and Alternate Minimum Tax, among other measures.
According to the Committee For A Responsible Budget, Trump’s tax plan is estimated to carry about $5.8 trillion over a decade of gross tax cuts and would cost $2.2 trillion on net through 2027.
When Economic Adviser Gary Cohn was questioned during Thursday’s White House press briefing about the $2.2 trillion estimate from the Committee For A Responsible Budget adding to the federal debt, he responded by claiming that they are wrong because of the way they score and maintained Trump’s tax plan will have a “dramatic impact on economic growth.”
“We know that 1 percent change in GDP will add $3 trillion back. So if they’re right, we’re only going to pay down $800 billion dollars to the deficit. I’ll live with $800 billion paid” Cohn said.
The Committee For A Responsible Budget concluded in their estimate on September 27th that given today’s record-high levels of national debt which currently stands at $20 trillion, the U.S. cannot afford a deficit-financed tax cut and said tax reform adding to the U.S. national debt is likely to slow, rather than improve, long-term economic growth.
President Trump mocked Democrats on Thursday in a tweet in which he also boasted about the “great reviews” for their tax cut and reform bill which came forward mostly by right leaning media outlets such as the Wall Street Editorial Board, the New York Post Editorial Board, and the Washington Times Editorial Board.
Trump tweeted yesterday, “Democrats don’t want massive tax cuts – how does that win elections? Great reviews for Tax Cut and Reform Bill.”
Democrats don't want massive tax cuts – how does that win elections? Great reviews for Tax Cut and Reform Bill.
— Donald J. Trump (@realDonaldTrump) September 28, 2017
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