Fiscal Follies

 Neither the House or Senate tax plans will meaningfully boost long-run economic growth, but both will substantially boost future deficits and debt. Despite lower corporate taxes, growth will be stymied by a full employment economy, resulting in higher inflation and interest rates. At the macroeconomic level, higher equity prices should compensate for lower house prices. The Bush and Reagan cuts occurred when debt/GDP was much lower, and unemployment was high.

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