Don't know what you are referring to, but you don't need any of that. Just simple addition and subtraction skills, basic accounting knowledge, and some logic.

They used their farcical 2 trillion dollar revenue projection twice, once to pay for tax cuts, and then again to help balance the budget.

It doesn't work that way.

Within that framework they do things that don't add up, like claim to end estate taxation completely in the tax plan.....Yet gain 300 billion in estate tax revenue in their budget projection???? Huh?

I don't care how drunk the Laffer wine got you, a 0% tax rate on a certain item can not generate any tax revenue from that item. Just not possible. Pick whatever number you want and times it by 0 and the result is, your guessed it, zero.

And despite that the budget STILL couldn't get the thing to balance over a decade.

Which is in part why it is DOA even with Republican control of the legislature.

This post was edited on 5/26/17 at 8:05 pm

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Posted by NC_Tigah

Carolinas

Member since Sep 2003

124188 posts

Posted on 5/27/17 at 5:54 am to bonhoeffer45

quote:
quote:
Do tell.

Just please no reference to the recent Pocahontas/Summers' embarrassment
Don't know what you are referring to, but you don't need any of that. Just simple addition and subtraction skills, basic accounting knowledge, and some logic.

They used their farcical 2 trillion dollar revenue projection twice, once to pay for tax cuts, and then again to help balance the budget.

farcical?

It appears to me the Trump Administration's economic team simply applied obamanomics' growth rate (2%) vs a frankly conservative assessment of growth rate projection under Trump's Proposed Tax Reform Plan (3%). Then they tallied differences over 10yrs.

The cumulative tax revenue differential IAW Hauser's Law, using an 18% rate, would be $4.152T. So all things being equal, Trump's Tax revenue would exceed that in the Obamanomics model by over $4.1Trillion.

However, as Larry Summers, Elizabeth Pocahontas, and others point out, all things are not equal. Due to rate reductions, Trump Tax may not collect as much as obamanomics tax would have. To remedy that, it appears Mnuchin and Mulvaney adjusted their tax revenue numbers downward by over $2Trillion.

So they claimed a "cost" of $2Trillion with a net of $2.1Trillion in revenue.

ETA: I wouldn't be surprised if the Trump Team's numbers, with rounding, came out at $2.1T in "cost" and $2.1T in revenue. That would account for Pocahontas, Summers, the Networks, etc. all jumping on the repeated $2.1T number, assuming it was some sort of double count.

This post was edited on 5/27/17 at 6:46 am

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