The Department of the Treasury took issue with a recent analysis that claimed the GOP’s 2017 tax cuts law did not have much of an impact on the economy, saying the report used “flawed methodology.”
“After careful review of the report, it appears that CRS’s economic analysis of the [Tax Cuts and Jobs Act] used a flawed methodology that tacitly assumed the anticipation of the Trump administration’s tax and regulatory relief had no effect on the economic outlook of the United States,” Kautter wrote.
“Beginning in January 2017, the Trump administration began implementing an economic agenda to reduce burdensome regulations, engage the private sector to promote pro-growth policies, and negotiate trade deals to open up market access for American businesses. Therefore, appropriate — and truly unbiased — economic analysis should have benchmarked the impact of the Trump administration’s economic agenda against forecasts of the economy generated prior to January 2017.”
Kautter accused the CRS, an agency that falls under the Library of Congress, of not using certain data in its report that “would likely have led to vastly different conclusions.”
Republicans have applauded the tax cuts, which dropped rates for both personal and corporate taxpayers. Critics said they were skewed too far toward the wealthy.