My latest Bloomberg View column.
“There’s nothing wrong with supply-side economics that division by ten wouldn’t cure.” The quip came from Charles Schultze, the chairman of the Council of Economic Advisers in Democrat Jimmy Carter’s White House. It meant that improving incentives to work and invest would promote economic growth — but not nearly as much as tax-cutting enthusiasts believed.
The point applies to the politics of tax cuts, too. Both parties are exaggerating the impact the tax bill making its way through Congress is likely to have in the next elections. . . .