Magazine March 25, 2019, Issue

Taxes Pruned, the Economy Grows

Former Speaker of the House Paul Ryan at news conference announcing the passage of the “Tax Cuts and Jobs Act” at the U.S. Capitol in Washington, D.C., November 16, 2017 (Aaron P. Bernstein/Reuters)
And the Congressional Budget Office bears it out

Is the tax cut expected to pay for itself? Yes — if we use the Congressional Budget Office’s forecast and any economically logical standard, the tax cut makes both current and future generations better off.

The CBO now expects the nominal gross domestic product to increase nearly $750 billion more per year by 2020 than in its forecast prior to the tax cut. It originally attributed about one third of that growth to the tax-cut legislation — even by that estimate, the cut more than pays for itself. The CBO expects that, through a combination of real GDP growth and a

Ed Conard is an American Enterprise Institute adjunct fellow, a former Bain Capital partner, the author of The Upside of Inequality: How Good Intentions Undermine the Middle Class and a contributor to Oxford University Press’ United States Income, Wealth, Consumption, and Inequality.

In This Issue



Special Financial Section

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