Predictions on Republican Tax Cut and Elections 2018

Breitbart News? What a joke.

Still living on an Obama economy and nothing has been done by Repubs to mutilate it yet. Even the rescission of the 2001/2003 tax breaks and the imposition of higher taxes on the richer in income has not slowed the economy. Again this disproves the time again and again tried false panacea of skewing tax breaks to the 1% of the household taxpayer making >$500,000 and thinking the economy will leap forward. It did not happen as Republicans planned and lied about in 2001. Indeed, even a tax increase on the rich in income by Obama did not slow the economy and it helped match revenues to deficit spending.

And, when the tax cuts were scheduled to expire at the end of 2012, extending the high-income tax cuts in particular was projected to have almost no effect on economic growth.  The Congressional Budget Office (CBO) estimated in 2012 that extending the high-income tax cuts would have boosted GDP by just 0.1 percent in 2013.[17]  Indeed, allowing the high-income tax cuts to expire after 2012 does not appear to have had any substantial negative impacts on economic growth, as proponents of the tax cuts had claimed, and the economy has continued to grow steadily since then.[18]  This is consistent with the broader empirical literature about taxes on high-income people and economic growth.  As one comprehensive review of the empirical literature by three leading tax economists found, “there is no compelling evidence to date of real responses of upper income taxpayers to changes in tax rates.”[19]

Lets get back to the real reason behind this 2:1 proposed tax cut (when compared to the George Bush 31% tax break) to the 1% of the household taxpayers making >$500,000 annually in income. This has little to do with giving a tax break to the 1% and invigorating the economy. It is another McConnell, Trump, Republican effort to wipe the slate clean of any action taken by Obama. Obama increased taxes on the rich in income with the investment tax to fund the ACA and the tax increase coming from other taxes on capital gains and income with the sun setting of the 2001/2003 tax breaks. And yet, the economy keeps on going like the pink bunny. The only thing which might make the economy stumble is a tax break such as what McConnell, Ryan, and Trump propose skewing almost 66% of it to the 1% of the household taxpayers making >$500,000 annually and then paying for it with cuts in Medicare, Medicaid, and other programs impacting those of far less income. Capisci?

The only line in your comment which I will not repeat here and being on topic is the last line. Automobile inventory is at a 13 year high water mark and that industry will slow down taking with it all of its suppliers. I expect the economy to slow especially with the Fed increasing rates.