Trump’s Tax Cut Plan Will… Pay… For… Itself!

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Back during Steve Mnuchin’s confirmation hearings for Treasury Secretary, he said he was surprised that IRS staffing had gone down. This just reduces the number of audits they can perform, and therefore the amount of tax revenue they collect from high earners. Just think about it. If you increased hiring, it would pay for itself!

It was très adorbs. But Mnuchin is a quick learner, and he never brought that subject up again. Instead, he’s now talking about a much more acceptable kind of plan that pays for itself. The subject, of course, is tax cuts:

Treasury Secretary Steven Mnuchin said the economic growth that would result from the proposed tax cuts would be so extreme — close to $2 trillion over 10 years — that it would come close to recouping all of the lost revenue from the dramatic rate reductions. Some other new revenue would come from eliminating certain tax breaks, although he would not specify which ones.

“The plan will pay for itself with growth,” Mnuchin said at an event hosted by the Institute of International Finance.

The Congressional Budget Office will have a very different take on this, and their take is the only one that matters. So why does Mnuchin even bother with this tired old charade? Maybe so that Donald Trump can yell and scream about how the CBO is rigged when they say that his tax plan is a deficit buster? Maybe to give congressional Republicans an excuse to fire Keith Hall and install a new CBO director who will give them whatever numbers they want?

Who knows? Maybe it’s just reflex. While we wait to find out, however, here’s a chart showing income tax receipts following the five most recent big changes to tax rates. You can decide for yourself if tax cuts pay for themselves or if tax increases tank the economy.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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