If there’s a message coming from Newt Gingrich’s op-ed, it’s that Republicans must put together a compelling message to pass the Tax Cuts and Jobs Act. Gingrich reminds Republicans that “passing serious legislation is very hard work. There is still a great deal to do, and the timeline is incredibly tight”, adding that “The Joint Committee on Taxation has already provided preliminary analysis for the bill. Its estimates are static and assume tax cuts will have no impact on growth. As a result of this bad assumption, the JCT incorrectly estimates the bill would create a significant budget shortfall, $1.43 trillion over 10 years.”
Gingrich continued, saying “The truth is, our gross domestic product is growing at 3 percent, largely due to deregulatory efforts by the Trump administration and the expectation of tax cuts. Passage of the Tax Cuts and Jobs Act would further spur GDP growth, so the bill should be scored dynamically. The Tax Foundation has made dynamic estimates on the Tax Cuts and Jobs Act, which show the bill would ‘significantly lower marginal tax rates and the cost of capital, which would lead to 3.9 percent higher GDP over the long term, 3.1 percent higher wages, and an additional 975,000 full-time equivalent jobs.’ This economic growth would raise federal revenues by nearly $1 trillion over 10 years, according to the Tax Foundation. In the end, this new revenue could bring the bill close to neutral, depending on what baseline is used to score it.”
Let’s get serious about something. The Tax Cuts and Jobs Act will speed up the economy. That’s indisputable even though Nancy Pelosi insisted in this speech that it would kill jobs. Ms. Pelosi has told lots of whoppers in the past. This is another whopper. Republicans seem interested in self-destruction.
Sen. Lankford has announced his opposition to it because it supposedly increases the deficit. Here’s a simple question for Sen. Lankford. If Republicans fail to pass this bill, what’s the likelihood they’ll have to vote on a Democrat budget that would hurt job creation and economic growth? What’s the likelihood that a Democrat budget would increase the deficit more than this bill would?
The Tax Cuts and Jobs Act isn’t perfect but it’s definitely a step in the right direction. There’s economic growth happening right now. This isn’t just the right time to pass tax cuts. It’s the best time to pass the Tax Cuts and Jobs Act.