President Trump tax cuts not a failure – rather, they have yet to take effect

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President Trump’s federal budget books
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– Opinion covered by Quincy Quarry News with commentary added.

 

President Trump tax cuts not a failure – rather, they have yet to take full effect.

 

From a guest writer opinion piece in the Washington Post comes a economic brief asserting that President Donald Trump’s tax cuts will provide considerable economic benefit in coming years.

 

Always – ALWAYS – follow the money
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While critics seized on the Treasury Department’s recent report that the federal deficit grew from $666 billion in fiscal 2017 to $779 billion in the just-ended fiscal year. 

 

Here was proof, they claimed, that the 2017 tax cuts are already reducing federal revenue and increasing the deficit.

 

The Washington Post’s guest opinion piece writer countered by noting that there was a modest uptick in total tax revenues in just completed Fiscal Year 2018 and that more should follow as businesses plow back the funds derived from their tax cuts into their business and the full economic effect of their doing so will take a couple of years for such increased investment to yield increases in profits.

 

While the logic offered is compelling, the economist on the Quincy Quincy’s financial and other sorts of sordid affairs desk was a skeptical student of Supply Economist Arthur Laffer shortly before he came into national attention forty years ago and – well – we all later found out what Reagan Administration Director of the Office of Management David Stockman eventually said about Supply Side Economics.

 

Moreover, the ultimate problem is not so much tax rates as it is spending.

 

In any event, time will tell in a couple years if the thesis published in The Washington Post is valid – or not.

 

Read more Post Opinion pieces:

 

Catherine Rampell: The Republican tax cut is a big, fat failure

 

E.J. Dionne Jr.: The hidden costs of the GOP’s deficit two-step

 

Robert J. Samuelson: Deficit addiction is a bipartisan disease

 

Megan McArdle: Democrats are about to have to pay up

Source: Opinion | You can’t call the tax cuts a failure. We haven’t gotten to the good part yet.

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