President Donald Trump has been congratulating himself for the passage of the new Republican tax plan for months. Recently, he was gushing about the projected growth of the gross domestic product (GDP).
But according to a new analysis, by 2028, 80% of the economic growth generated by the Republican tax plan will leave the US and benefit non-Americans.
There is a difference between GDP and the gross national product (GNP). GDP measures the level of production in the US. GNP measures the income earned by all Americans. Democratic Senator Chris Van Hollen, after completing his analysis, stated “We heard statement after statement about how this tax plan would be great for American workers but the analysis is clear…When this thing kicks in, 80 cents of every dollar [gained from the tax plan] will go to foreigners and not American workers. That’s a stunning number.”
At a hearing with the Congressional Budget Office, Van Hollen asked director Keith Hall about his calculations, to which Hall replied, “Your calculation’s right, I’m just not sure that’s exactly how I’d look at the benefits of, or the impact, of the tax act”.
Even more troublesome, per Newsweek, “[t]he CBO projects that federal spending will exceed revenues by $804 billion in fiscal year 2018, up from $665 billion in 2017. The national debt is now on track to be 100 percent of GDP by 2028.”
So the Republican tax plan, created by the party of “fiscal responsibility” and touted to be great for the average working American man or woman, is, in reality, a financial disaster which will have little to no benefit for the average American, but will benefit corporations and foreigners instead. Sounds about right. Republicans, as a rule, don’t care about anyone but themselves, and the tax reform proves that. Are we supposed to be surprised?