A coalition of economists recently penned a letter to Treasury Secretary Steven Mnuchin, arguing that comprehensive, pro-growth tax reform can make the economy grow faster than it has in over a decade.
In the letter, the economists highlight different economic models that show the benefits of pro-growth tax reform. Lowering the corporate rate, they say, will help lead to GDP growth that far outpaces our current rate.
“Is this estimate of the growth effect realistic? According to one leading model using an alternative framework, the proposal would increase the U.S. capital stock by between 12% and 19%, which would raise the level of GDP in the long run by between 3% and 5%,” the economists conclude.
We agree that lowering the corporate tax rate will help the U.S. economy grow at a faster rate, while making U.S. businesses more competitive globally.
The letter was published in the Wall Street Journal on Sunday. To read it in its entirety, click here.
If you think it’s time for pro-growth tax reform that unrigs the economy, sign here.