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Title : What Scott Sumner Fears Almost The Gop Taxation Reform
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What Scott Sumner Fears Almost The Gop Taxation Reform

Scott Sumner nails this:

This is what I feared

The proposed GOP taxation pecker is non what it seems.  First of all, pay no attending to the media give-and-take of who gains as well as who loses—as they purpose naive models where stockholders are assumed to behavior the burden of a corporate income tax, as well as the individual who writes the banking corporation represent to the IRS is assumed to behavior the burden of the personal income tax.  In the long run, markets accommodate to taxation changes as well as largely showtime whatever distributional impacts.

Also pay no attending to the fact that taxes are supposedly existence “cut”.  The GOP has no intention of cutting spending, as well as 1 means or around other guild must pay for all of that spending.  Money doesn’t just grow on trees.  Yes, the “starve the beast” theory mightiness convey around validity, but nigh probable the Dems volition largely showtime whatever taxation cuts alongside higher time to come taxes.  And meanwhile the larger budget deficits volition locomote a drag on investment.

In these 2 paragraphs, Sumner has managed to summarize what volition precisely locomote on alongside the GOP taxation "reform" bill. Few others convey done as well as thus at all, never hear alongside such shining brevity.

 -RW

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