A bit more on Jeb’s not so excellent tax plan

September 14th, 2015 at 7:29 am

Over at WaPo PE, with lots of links to media reports that got it right!

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3 comments in reply to "A bit more on Jeb’s not so excellent tax plan"

  1. Robert Salzberg says:

    Jeb!’s tax cut plans have been estimated to cost $3.4 trillion over the next 10 years. Jeb! also claims that he can raise GDP growth to 5%.

    The American Society of Civil Engineers has estimated that we need to spend $3.5 trillion to bring our infrastructure up to good condition. $3.5 trillion over 10 years works out to around 1.6% of GDP per year and with a conservative multiplier of 1.5 would roughly double GDP growth for 10 years and get us close to Jeb!’s 5% target.

    Tax Wall Street to Repair Every Street (and bridge, levee, power grid, water system, airport, etc) A 0.1% financial transactions tax would generate about $100 billion a year and if used to fund a national infrastructure bank that issues bonds, $1 trillion could be leveraged to get most of the $3.5 trillion done on a revenue neutral basis. (An increased gas tax indexed to inflation could be passed in Bernie’s second term which would save the economic pain until long after the economy heats up due to fixing our infrastructure.)

    Jeb! is just heaping on the debt so an apples to apples comparison would be tax cuts vs. deficit spending.

    So JB, you’ve written the talk about not proposing policy based on what can be done in the current political environment vs. what should be done. Shouldn’t a plan to fully fund our infrastructure and a long term revenue stream to fund it fall under the category of what economists should propose? If not you, then who?

  2. Larry Signor says:

    I completely agree with Robert, but there is a third alternative to funding increased demand. QE for the people…fire up the printing press. If it debases the dollar on the international market, so much the better. If it causes some homebound inflation, better still. Ignoring the bottom 80% will not work much longer, witness the Trump debacle. Any port in a seemingly unending storm.