- Sun Nov 05, 2017 7:06 am
#96105
http://www.factcheck.org/2017/11/larges ... t-history/" onclick="window.open(this.href);return false;
As we’ve written before, the best measurement is the revenue effect as a percentage of gross domestic product. Tempalski wrote in 2006 that this measure “eliminates the effects of inflation, real economic growth, and the size of total federal receipts.” Over a four-year average, the revenue effect of Reagan’s 1981 tax cut was 2.89 percent of GDP. (Reagan’s cut also had the largest impact as a percentage of federal receipts over a four-year average.) That’s the most of any tax cut in the Treasury report, going back to 1940.This is an excellent piece on the tax plan proposed by the GOP. It is from a well respected organization.
Using CRFB’s cost estimate for the current Republican tax plan, the average revenue effect would be 0.9 percent of GDP over the 10-year period. That’s also lower than tax cuts implemented in 2010 and 2013, as well as those in 1948, 1945 and 1964, with the last three measured over just one year. (The Treasury report includes the four-year averages for tax measures since 1978, but uses shorter periods for prior years.)

