BREAKING NEWS EXCLUSIVE: Sisters of suspect shot by Eugene police speak out Full Story

Treasury analysis asserts GOP tax plan would be paid for

With just days to go before House and Senate Republicans want to vote on a final tax bill, the Treasury Department is...

Posted: Dec 11, 2017 4:19 PM
Updated: Dec 11, 2017 4:19 PM

With just days to go before House and Senate Republicans want to vote on a final tax bill, the Treasury Department issued a one-page memo outlining its views on the economic growth prospects of the Senate-passed version of the bill.

Its conclusion: The tax bill will not only generate enough new revenue to pay for itself, but generate an additional $300 billion over a decade.

How it arrived at that conclusion, however, has been called into question by tax policy experts.

"This is not a serious analytical effort that could withstand peer review," said Mark Mazur, director of the Tax Policy Center.

Related: Top Senate Democrat seeks broader inquiry into Treasury's missing tax analysis

In modeling the Senate tax plan, the Treasury's Office of Tax Policy came to a similar conclusion as the nonpartisan Joint Committee on Taxation, the memo said. The JCT found that the bill would lose close to $1.5 trillion over a decade. After accounting for the potential growth effects of the bill's measures, however, the JCT found it might generate $408 billion in new revenue, reducing the bill's cost to just over $1 trillion.

But then Treasury took its analysis one step further, layering on a 2.9% annual growth assumption that comes from the White House budget office.

And that 2.9% rate is assumed to come from the Trump administration's total economic agenda, not just tax reform.

Instead of doing its own formal analysis of how the tax provisions would affect economic growth, the Treasury assumed a certain level of growth and the revenue it could generate, according to Martin Sullivan, chief economist of Tax Analysts.

"They just ran their revenue model assuming high growth but without telling us where 'the Administration projections' come from," he said.

The one-page memo comes as the Treasury Department's Inspector General is conducting a review into what happened to the economic analysis of the Republican tax plan that was repeatedly promised by Treasury Secretary Steven Mnuchin.

Rich Delmar, general counsel for the agency's inspector general, told CNN on Monday a pending review launched last month will continue.

-- CNN's Phil Mattingly contributed to this report

Oregon Coronavirus Cases

Data is updated nightly.

Cases: 76654

Reported Deaths: 936
CountyCasesDeaths
Multnomah17825244
Washington10714103
Marion9514146
Clackamas654880
Lane444143
Umatilla440249
Jackson395135
Deschutes248015
Malheur241844
Yamhill176817
Linn146923
Polk130019
Douglas96718
Klamath9104
Jefferson86211
Benton8187
Union7978
Morrow6647
Lincoln64615
Josephine5674
Wasco53819
Columbia5263
Coos4433
Hood River4141
Clatsop3680
Baker2864
Crook2376
Curry1432
Tillamook1390
Lake1381
Grant1371
Harney1021
Wallowa713
Gilliam230
Sherman230
Wheeler50
Unassigned00
Eugene
Scattered Clouds
47° wxIcon
Hi: 46° Lo: 30°
Feels Like: 47°
Corvallis
Clear
42° wxIcon
Hi: 46° Lo: 30°
Feels Like: 42°
Roseburg
Clear
43° wxIcon
Hi: 50° Lo: 34°
Feels Like: 43°
North Bend
Clear
53° wxIcon
Hi: 53° Lo: 39°
Feels Like: 53°
KEZI Radar
KEZI Temperatures
KEZI Planner

LATEST FORECAST

Community Events