Biden’s Commerce Secretary Claims No ‘Shred Of Evidence’ That Trump Tax Cuts ‘Increased Growth And Productivity’


On Wednesday, Biden Administration Commerce Secretary Gina Raimondo stated, “There is not a shred of evidence to show that the [Trump tax] cuts in 2017 increased growth or productivity.”

Commerce Secretary Gina Raimondo says "there is not a shred of evidence to show the [Trump] tax cuts in 2017 increased growth and productivity."

The Heritage Foundation explained, “In December 2017, Congress passed a $1.5 trillion tax cut to spur business investment, support the long-running post-financial-crisis economic expansion, and simplify taxpaying. The primary permanent component of the TCJA is the 21 percent corporate income tax rate. The law lowered the federal rate from 35 percent, which had made America one of the highest corporate-income-tax countries in the world. The lower rate was paired with business expensing, allowing businesses to write off the full cost of investments through the end of 2022. These two provisions were the primary driving force behind projections of increased economic growth.”

There may be disagreements about whether the tax cuts increased growth and productivity, but it is a wild statement to aver that there is “not a shred of evidence.” The Heritage Foundation noted last month:

A new Heritage Foundation report chronicles how the tax cuts were a success on each of these margins. Following the tax cuts, the Congressional Budget Office projected a sustained increase in business investment. Through 2019, actual investment outpaced the government scorekeeper’s projections. Tax cut-driven turnaround in investment also showed up as a spike in new manufacturing orders, small-business optimism, and new-business applications. Those forces helped boost gains for workers. New job openings surged in 201... (Read more)

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Submitted 194 days ago

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