Trump's Tax Plan Would Add $5.3 Trillion To National Debt

[MTZehvor]

Soundwave said:

Gourmet said:

Whooops it looked so click-baity I didnt bother checking if there was a source stated. It's The Committee for a Responsible Federal Budget, dunno who they are though.

 

Also the fourth paragraph "When Trump introduced his economic plan last week, he vowed that his tax cuts would be paid for partly by triggering record economic growth. The committee was skeptical and presumed these steps would generate no new growth."

How does that even make sense? No growth from tax reducing? We're expected to believe the money will go under someone's bed? This article IS click-bait.

It's been shown in several studies that tax cuts don't grow the economy. 

http://www.businessinsider.com/study-tax-cuts-dont-lead-to-growth-2012-9

Rich people just take those tax cuts and hoarde the money for themselves, they don't "trickle it down" to the average peons, the whole point is to keep as much for yourself as possible and push it into off-shore tax havens.

Trump and others have parroted this line of tax cuts spurs the economy for the "middle class", if that was true the middle class of today should be much more prosperous than say the 1960s when taxes on higher income brackets were far higher. But that is not the obvious reality. 

Well, the article is half right. Tax cuts can help struggling economies; but they have to be carefully placed. Cutting corporate taxes is one of the primary strategies that public administrators use to encourage start ups to open and pre-existing businesses to open new plants in their communities. The key is to ensure that you're placing tax cuts in specific locations; a simple tax decrease across the country won't work. They need to be deliberately placed in areas that are struggling with job creation but have the potential to grow with a well placed tax cut. In other words, the focus on growing the economy needs to be less concerned with the national sphere and more focused on individual cities and communities.

Another big problem is tax cuts are often placed on income tax, which is less effective than corporate tax or sales tax, but that's a different issue for a different topic. Long story short, tax cuts can be helpful, but they need to be positioned carefully.