The data is in....
And almost every predicition surrounding the big tax cuts is a bust. Can we finally please put this nice man in a padded cell somewhere?
"The Moody’s warning challenges a core promise of President Trump and his fellow Republicans, who insisted the $1.5 trillion tax cut they passed last year would pay for itself and even generate more tax revenue, not less, because economic growth would suddenly boom. Trump predicted last year that the economy would “take off like a rocket ship” once his tax cuts went into effect. White House economists predicted family incomes would rise by $4,000 or more due to a sharp cut in business taxes.
None of that is happening or coming into view. The economy grew at a robust 4.2% in the second quarter, the highest level since 2014. But Moody’s Analytics predicts growth of just 2.9% for all of 2018, and 2019 as well. It will then fall to 0.9%, according to the forecasting firm. If so, economic growth under Trump would average just 2.2% per year, almost exactly the same as during President Obama’s second term.
The federal budget deficit, meanwhile, rose from 3.5% of GDP in 2017 to 3.8% in 2018. Moody’s expects it to hit 4.8% of GDP in the current fiscal and soar to 8% by 2028. The U.S. fiscal debt burden is the heaviest among nations that earn Moody’s Aaa rating, its highest."
