Wharton study: GOP tax bill does not pay for itself
Source: The Hill
BY JOHN BOWDEN - 12/12/17 09:39 AM EST
Wharton University has released an analysis of the Republican tax plan that concludes that even under favorable economic conditions the plan will add more than $1 trillion to the national debt.
The analysis released Tuesday by the Penn Wharton Budget Model finds that "even with assumptions favorable to economic growth," the Senate's version of that tax bill would add more than $1.5 trillion to the nation's debt over the next 10 years.
The Wharton model estimates that the plan would add $1.8 trillion to $1.9 trillion in debt even with economic growth. "By 2027, under our standard economics assumptions, GDP is projected to be between 0.5 percent and 1.0 percent larger, relative to no tax changes. Debt increases between $1.8 trillion and $1.9 trillion, inclusive of economic growth," Wharton's analysis reads.
Republicans have argued that economic projections are missing the mark and that their tax plan will increase economic growth enough to raise government revenue. The bill's centerpiece is a reduction in the corporate tax rate from 35 percent to 20 percent.
Read more: http://thehill.com/policy/finance/364415-wharton-study-gop-tax-bill-does-not-pay-for-itself
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