By Michael IsikoffA lot of people are talking about what it means for the American economy if the House Republican tax plan becomes law.
Here’s a quick summary:It means that the US is on track to become a net exporter of goods and services to other countries for the first time in at least a decade.
The Congressional Budget Office expects the plan will increase US economic output by 3.1% in 2021, as manufacturing and services companies boost exports and businesses add jobs.
The White House has said the plan would reduce the deficit by $1.4 trillion over the next decade, mostly by reducing the number of people on food stamps and the cost to individuals of paying federal income taxes.
But the plan could also cost the US economy tens of billions of dollars.
Some economists think that even with the economic gains that the plan brings, it would hurt the country’s economic growth.
And many experts also say that the Republican tax cut will not boost the economy.
So how much would it cost?
Here’s how we estimate the economic benefits of the tax plan.
We looked at the economic impact of the House tax plan over a 30-year period, as well as a baseline of economic growth expected over the 2020s, 2033 and 2046.
We looked at three key areas: wages, business investment and employment.
WagesThe House Republican plan would cut taxes for workers by $2,000 for individuals and $3,000 per family.
It would also give tax cuts to corporations, which could boost their profits.
The CBO projects that over the 30-yr period, the tax cut would increase wages for Americans by 0.6% annually.
That would increase median wages for workers to $56,300, up from $45,900 in 2021.
That increase would come mainly from increased compensation and wage growth for those who earn more than $150,000 a year.
That’s the average for workers in 2019.
But it would also lead to a wage increase for most workers.
Business investmentThe House GOP plan would increase corporate profits by an average of 1.5% per year.
But that increase would be concentrated among companies that invest in new technology and research.
That could increase overall economic growth by 0,1% annually, CBO projects.
That means that businesses would add jobs, but jobs would be more likely to be in low-wage sectors such as manufacturing.
Business investmentThe CBO expects businesses to invest $1 trillion in research and development, up 1.7% annually in 2021 and 3.4% in 2022.
That amount would boost GDP by 1.9% annually over the period.
But economists have said that businesses could also invest less and would see fewer new jobs created.
The increase would also result in a wage boost, but it would be mostly in the low- to middle-wage jobs that the tax cuts will help to create.
In the longer term, the CBO projects the tax bill would increase the value of US treasuries by about $10 trillion, which would lead to an additional $2.4 billion in GDP for 2021 and $1 billion in 2022, as Treasury yields rise in value.
That translates to an extra $1,900 for every household.
The Tax Policy Center says that the $2 trillion in economic growth would mostly be generated by higher-paying jobs, while the economic benefit to the middle class would be largely offset by higher income inequality and slower economic growth overall.
The Economic Policy Institute, an economic think tank, has said that even if the tax package is enacted, the economic impacts will be negligible over the long run.
We looked more broadly at the long-term effects of the bill, including the growth rate of US GDP and job growth.
We also looked at changes in the national debt and the potential impact of other taxes.
The House tax bill is not expected to make significant changes to the deficit.
But over the longer run, the impact of these changes will be more than offset by the tax increases in other areas.
We rate this statement Mostly False.