In Tax Overhaul, Trump Tries to Defy the Economic Odds
- 6 years ago
In Tax Overhaul, Trump Tries to Defy the Economic Odds
“We’re going to easily see 4 percent growth next year,” the National Economic Council director, Gary D. Cohn, said.
“The really hard question a year from now is going to be is how much of the miniboom we see is just an acceleration of stuff
that was going to happen anyway or additional investment that is really going to spur the economy,” said Mihir A. Desai, a professor of finance at Harvard Business School.
At the same time, the anticipated cut in the corporate rate to 21 percent from 35 percent
and other business perks are lifting the stock market to new heights.
Next year, for example, businesses will be able to borrow money and deduct the cost of those loans at the current rate of 35 percent.
American taxpayers, in large part, would also get cuts, though most of the changes affecting them would expire after 2025.
And in 2019, growth is expected to drop to 1.8 percent, Alec Phillips, chief United
States political economist for Goldman, said Wednesday after the Senate vote.
When President Trump adds his distinctive signature to the tax bill, he will also be making a huge bet
that the Republican strategy of deep cuts for businesses and wealthy individuals will fuel extraordinary growth across the board.
“We’re going to easily see 4 percent growth next year,” the National Economic Council director, Gary D. Cohn, said.
“The really hard question a year from now is going to be is how much of the miniboom we see is just an acceleration of stuff
that was going to happen anyway or additional investment that is really going to spur the economy,” said Mihir A. Desai, a professor of finance at Harvard Business School.
At the same time, the anticipated cut in the corporate rate to 21 percent from 35 percent
and other business perks are lifting the stock market to new heights.
Next year, for example, businesses will be able to borrow money and deduct the cost of those loans at the current rate of 35 percent.
American taxpayers, in large part, would also get cuts, though most of the changes affecting them would expire after 2025.
And in 2019, growth is expected to drop to 1.8 percent, Alec Phillips, chief United
States political economist for Goldman, said Wednesday after the Senate vote.
When President Trump adds his distinctive signature to the tax bill, he will also be making a huge bet
that the Republican strategy of deep cuts for businesses and wealthy individuals will fuel extraordinary growth across the board.