Douglas Holtz-Eakin, president of the conservative American Action Forum and former director of the Congressional Budget Office, and other supporters of the tax plan don’t deny that the tax plan will elevate deficits. But they insist that it wil
“The calculation at one level is pretty simple,” Holtz-Eakin says. “We’re going to have larger deficits, and that is worth it for the growth we’re going to get.”
But most nonpartisan economists have expressed doubts that the plan will give the economy much of a jolt. They recall that wages actually fell after Congress cut the corporate tax rate in 1986.
What’s more, though the corporate tax cuts would be permanent, the tax cuts for individuals would expire after 2025. And a change in how the government accounts for inflation would lift many individuals into higher tax brackets over time. If Americans had to pay higher taxes, they would be less likely to spend and boost the economy.
