The Trump administration claims his tax cuts will pay for themselves. Only 5 percent of economists believe that.
President Trump has assured America that the government will not have to borrow more money to compensate for the huge tax cuts he's proposed, but economists aren't sold. A new survey by the University of Chicago found that 84 percent of economists do not believe the Trump administration's claim that the economic growth spurred by his tax cuts — alongside the elimination of some tax breaks — will make up the difference. Only 5 percent of economists said they thought Trump's tax cuts would indeed pay for themselves.
Trump has proposed cutting the corporate tax rate from 35 percent to 15 percent, and whittling the seven existing tax brackets down to three rates of 10, 25, and 35 percent. Trump's Treasury Secretary Steven Mnuchin has claimed the cuts "could increase the rate of economic growth from around 2 percent to as much as 3 percent a year," The Washington Post reported.
In another portion of the survey, economists were asked if any tax cuts made since 1980 have "ever paid for themselves in general," the Post noted. None said that they had. "Cutting taxes can stimulate growth, but typically not by enough to increase total revenue collected," Yale University economist Larry Samuelson wrote in the survey's comments section.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The Committee for a Responsible Federal Budget has estimated Trump's tax proposal could cost the nation $5.5 trillion.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Why is Tesla stumbling?
In the Spotlight More competition, confusion about the future and a giant pay package for Elon Musk
By Joel Mathis, The Week US Published
-
How Taylor Swift changed copyright negotiations in music
under the radar The success of Taylor's Version rerecordings has put new pressure on record labels
By Theara Coleman, The Week US Published
-
Job scams are increasingly common. Here's what to look out for.
The Explainer You should never pay for an application or give out your personal info before being hired
By Becca Stanek, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published