Crapo Statement on Analysis Showing Economic Impact of Permanently Extending Trump’s Tax Cuts
Analysis shows pro-growth agenda fuels 3 percent GDP growth, $4 trillion in revenue
Washington, D.C.--U.S. Senator Mike Crapo (R-Idaho), Chairman of the Senate Finance Committee, issued the following statement on an analysis from the Council of Economic Advisors (CEA) projecting that making the Trump Tax Cuts permanent—combined with other Trump Administration pro-growth policies—will yield an average growth of at least 3 percent per year over the next 10 years, resulting in more than $4 trillion of additional revenue during that period.
“Certainty and stability in our tax code are critical for economic growth and activity,” said Crapo. “This analysis correctly recognizes the full economic impact of permanently extending the Tax Cuts and Jobs Act (TCJA), implementing commonsense regulatory reform and reducing wasteful government spending. President Trump’s pro-growth agenda will raise trillions of dollars in revenue, increasing prosperity and opportunity across all segments of the economy.”
Key numbers from the CEA analysis (TCJA extension combined with other pro-growth policies):
- 3.0 percent – annual real GDP growth rates over the next 10 years.
- $4.1 trillion – additional revenue over the next 10 years relative to CBO projects that assume TCJA expires.
- 3.3 to 3.8 percent – boost in short-run real GDP.
- 2.6 to 3.2 percent – increase in long-run real GDP.
- $2,100 to $3,300 – annual real wage increase per worker.
- $4,000 to $5,000 – increase in median-income household take-home pay.
- 4 million – full-time equivalent jobs saved.
- $100 billion – investment in distressed communities.
READ: CEA: The Economic Impact Of Extending Expiring Provisions Of The Tax Cuts And Jobs Act
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