It’s already the third longest expansion in history

Tax cuts could make it harder to fight the next recession

The Republican tax plan could squander some of Congress’s replica Purse precious recession fighting bullets on a healthy economy. By deepening the national debt Handbags Replica at a time when the economy doesn’t need help, the tax overhaul threatens to leave Congress with less wiggle room to respond when recovery from the Great Recession eventually dies.

Normally, presidents ask Congress to high quality replica handbags borrow vast sums of money to pay for tax cuts when the economy needs to be rescued from trouble. But President Trump is on the verge of enacting cheap replica handbags a $1.5 trillion tax plan with an economy enjoying its best growth in three purse replica handbags years.

“We should be paying down the debt aaa replica designer handbags now, so if we have a war or recession and we need to use tax cuts or increase government spending we’re in a position to do wholesale replica designer handbags so,” said David Kelly, chief global strategist at JPMorgan Funds. national debt held by the public has nearly tripled over the past decade to nearly $15 trillion today.

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Republicans argue that the tax plan which would slash the corporate tax rate to 20% from 35% and encourage companies to repatriate overseas profits will pay for itself with much faster economic growth.

replica bags china Independent analysts doubt that. In fact, the Joint Committee on Designer Replica Bags Taxation, the Congressional scorekeeper for tax bills, estimates the Senate tax bill will only generate enough growth to create about $408 billion in net new revenue over the next decade. replica bags china

replica designer bags wholesale That means even including the economic boost from the tax plan, replica bags the bill would still add about $1 trillion to deficits. In other words, the tax cuts may pay for less than one third of their cost. replica designer bags wholesale

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Related: Here’s what’s in the Senate tax bill

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Seiberg wrote that the Replica Designer Handbags next recession could be “deeper and longer than it might otherwise be” if the Fake Designer Bags government is unable or unwilling KnockOff Handbags to pile on more debt due to the tax plan.

7a replica bags wholesale Goldman Sachs recently warned in a report that larger deficits and rising debt could “reduce the ability to ease fiscal policy in response to an economic downturn.” 7a replica bags wholesale

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Fed chief Janet Yellen told Congress last week that America’s debt burden is very concerning and “should keep people awake.” Yellen indicated the problem will worsen as the country’s population ages because spending on Medicare, Medicaid and Social Security will outpace tax revenue.

cheap designer bags replica The GOP tax plan could leave Congress with less financial flexibility to tackle Designer Fake Bags these long term challenges. cheap designer bags replica

Related: 13 ways the tax bills would affect people

Modest economic benefit

Not only that, but the tax plan may not provide the kind of growth that would justify the cost.

bag replica high quality Goldman Sachs estimates that the Senate tax legislation would boost growth by about 0.3 percentage points in Wholesale Replica Bags 2018 and 2019. Goldman said the effect in 2020 and beyond “looks minimal and could actually be slightly negative.” bag replica high quality.

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