TRUMP’S TAX CUT COULD COST THE GOVERNMENT $9.5 TRILLION IN REVENUE: Donald Trump has a tax plan that would cut rates for businesses and individuals, end deductions and streamline the tax code to be simpler and easier for the common worker. It could also violate his pledge to cut taxes without adding to the debt and deficit. A new study released Tuesday by the Tax Policy Center found that his plan could leave the government short $9.5 trillion over a decade. Power Post has more:
Trump isn’t alone in creating a tax plan slammed by economists. The Tax Policy Center and other organizations in Washington estimate that nearly every Republican tax proposal released this year would lead to drastic cuts in federal revenue. An earlier analysis found that the tax plan released by former Florida Gov. Jeb Bush would cost the federal government $6.8 trillion over 10 years. But Bush has paired his tax plan with a proposal to reform and reduce spending on entitlement programs like Social Security and Medicare, which could help offset the cost of his tax proposal.
In April Trump said he opposed cutting entitlement programs, meaning he would have to find other ways to make up the $9.5 trillion in revenue losses from his plan.
SPORTSMEN AND HUNTERS SEE VICTORY IN THE SPENDING BILL: Traditional environmentalists aren’t the only ones celebrating some of the environmental policies in the year-end spending bill that passed last week. Sportsmen and hunters see big victories in conservation too, according to Field and Stream. The publication posted a roundup of all of the provisions in the omnibus that benefit their readers. The list includes:
• The Land and Water Conservation Fund was reauthorized through 2018, with $450 million appropriated for FY2016, an increase of more than $100 million over the FY2015 level.
• $35,145,000 was appropriated for The North American Wetlands Conservation Fund.
• The interest from the investment of Pittman-Robertson funds is deposited into that fund for use annually. This provision was reauthorized for 10 years.
• The Great Lakes Restoration Initiative was authorized for $300 million.
• $32.158 billion was allocated for Interior and Environment—a 6 percent increase over FY2015, which includes boosts for the Forest Service, Fish and Wildlife Service, National Park Service, and Bureau of Land Management.
LARRY SUMMERS ON THE FED AND STAGNATION: Harvard University professor and former treasury secretary Lawrence H. Summers weighed in on WonkBlog on Tuesday on how what he sees as missteps at the Fed could impede economic growth.
Unfortunately, the Fed and other policy setters remain committed to traditional paradigms and so are acting in ways that make secular stagnation more likely.
The core idea behind secular stagnation was that the neutral real rate had for a variety of reasons fallen and might well be below zero a substantial part of the time going forward. The inference was that economies might be doomed to oscillate between sluggish growth and growth like that of the 2003-2007 period that rested on an unstable financial foundation.