With the Republican tax package now finalized and coming to a vote in both houses of Congress, a debate has been raging over the bill's possible growth effects. In that debate, those who oppose the package seem to be underestimating the outsize impact of equipment investments.
STANFORD – In late November, a group of economists, including me, published an open letter to US Secretary of the Treasury Steven Mnuchin in the Wall Street Journal, in which we offered an evaluation of the positive growth effects of the Republican tax package that is now coming to a vote. Former Treasury Secretary Larry Summers and former Chair of the Council of Economic Advisers Jason Furman, raised several technical questions about our conclusions. We responded. Another signatory, Harvard University’s Robert Barro, then published a deeper elaboration of the tax plan’s growth effects here at Project Syndicate, to which Summers and Furman offered a response.
STANFORD – In late November, a group of economists, including me, published an open letter to US Secretary of the Treasury Steven Mnuchin in the Wall Street Journal, in which we offered an evaluation of the positive growth effects of the Republican tax package that is now coming to a vote. Former Treasury Secretary Larry Summers and former Chair of the Council of Economic Advisers Jason Furman, raised several technical questions about our conclusions. We responded. Another signatory, Harvard University’s Robert Barro, then published a deeper elaboration of the tax plan’s growth effects here at Project Syndicate, to which Summers and Furman offered a response.