The Senate Tax Bill Will—Oh, You Know Already, Don’t You?

I still feel like crap today. On the bright side, I feel slightly less like crap than yesterday. Nevertheless, that probably means I should stick to nice, easy subjects. I think I managed to screw up yesterday’s post about the income of the top 1 percent five or six times before I finally got it right.¹

The Republican tax bill is always good for an easy post. Let’s try that. Here’s the latest Penn Wharton estimate of the effects of the bill all the way through 2040²:

There you go. By 2040, more than two decades from now, the Senate bill will create an extra $2 trillion in debt. At the same time, it will increase both GDP and labor income by 0.5 percent. That’s 0.02 percent per year, which is basically noise level. We can’t even come close to measuring GDP that accurately. For all practical purposes, the likely effect of the bill on GDP and labor income is zero.

No one in the Republican Party seems to care about that, and charts full of numbers don’t have any impact on the average voter. Still, just for the record, I figure it’s worth posting this stuff. Someone ought to.

¹It’s now correct, and probably fairly understandable too. Thanks, readers!

²The Penn Wharton folks produce both high and low estimates. I’ve averaged them here to get a single number for each category.

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily bluster—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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