[Wash Times] The Treasury Department said Monday that the Senate-approved tax reform plan would pay for itself and more, actually boosting revenue by $300 billion over 10 years.
The one-page analysis by Treasury counters a congressional forecast that the tax cuts would add about $1 trillion in deficits over the next decade.
Treasury said the legislation, which cuts corporate and individual taxes, would result in $1.8 trillion in additional tax revenue over a decade by spurring stronger economic growth. Subtracting tax cuts of $1.5 trillion from the measure under current law, the administration said, adds up to a gain.
"The administration has been focused on tax reform and broader economic policies to stimulate growth, which will generate significant long-term revenue for the government," said Treasury Secretary Steven T. Mnuchin.
Treasury’s analysis forecasts annual economic growth of at least 2.9 percent, higher than the 2.2 percent estimates used by the congressional Joint Committee on Taxation.
"Treasury expects approximately half of this 0.7 percent increase in growth to come from changes to corporate taxation," the report said. "We expect the other half to come from changes to pass-through taxation and individual tax reform, as well as from a combination of regulatory reform, infrastructure development, and welfare reform as proposed in the administration’s fiscal year 2018 budget." |