Everybody Hates the Trump Tax Plan Written by Paul Krugman Presented by David Nowak

Paul Krugman Born and raised in Albany, NY Keynesian Economist B.A. in Economics from Yale(1974), Ph.D. from MIT (1977) Distinguished Professor of Economics at Luxembourg Income Study Center at the City University in New York 2008 Nobel Memorial Prize Winner Op-Ed columnist for NY Times

GOP Tax Plan PRIVATE INVESTMENT ECONOMIC GROWTH   ECONOMIC GROWTH   Plan as described by Krugman

Risidual Effects GROWING ECONOMY   WAGES   SUM OF TAXES PAID  

The Problem The main goal of the cuts in corporate taxes is to increase capital expenditures of businesses Meeting of CEOs hosted by Gary Cohn CEO’s did not believe a change in the corporate tax rate would affect capital expenditures Tax Rates ARE NOT an important factor in investment decisions Plan falls apart, only making the rich, richer

Other Issues Raises taxes on most individuals 2-1 disapproval among general public Will lead to 13 million additional uninsured Tax cut induced deficits would lead to cuts in Medicare Deficits would grow more than $6 trillion over the next decade

Reality Bill provides no incentive to consume less and save more Money for capital expenditures must come from abroad Selling stocks, bonds, etc. to foreigners Inflow of foreign dollars drive up value of American dollar Huge Trade Deficits More than 2 million manufacturing jobs lost Any economic growth would benefit foreigners, not Americans

Tax Cuts and Jobs Act Actually lowers tax rates for almost all brackets Lower corporate tax rates from 35% to 21% Repeals Obamacare tax on those without health insurance CHART: Amadeo, Kimberly. "How Trump's Tax Reform Plan Affects You." The Balance Small Business. February 07, 2019. Accessed February 24, 2019. https://www.thebalance.com/trump-s-tax-plan-how-it-affects-you-4113968.

Does Everyone Hate the Trump Tax Plan? Not all people are negatively affected by the tax plan Krugman recalls NY congressman Chris Collins incentive Donors saying to “Get the Job Done” Unfavorable views by general public Time will tell if the tax plan has a positive or negative impact

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REFERENCES "Paul Krugman." The New York Times. November 12, 2014. Accessed February 24, 2019. https://www.nytimes.com/column/paul-krugman. Amadeo, Kimberly. "How Trump's Tax Reform Plan Affects You." The Balance Small Business. February 07, 2019. Accessed February 24, 2019. https://www.thebalance.com/trump-s-tax-plan-how-it-affects-you-4113968. "Krugman." About Paul Krugman | Paul Krugman | Nobel Prize Winner and Op-Ed Columnist for The New York Times. Accessed February 24, 2019. http://www.krugmanonline.com/about.php.