Originally Published: February 2, 2018 5:58 a.m.
Boy did I poke the bear! Two lefties took exception to my letter. One stopped just short of calling me a liar. The other had a long rant about the deficit and blamed the national debt on the Reagan/Bush tax cuts. Did he forget Obama ($10 trillion)?
Now about cherry picking my example. I worked six tax seasons for H&R Block, so I know a little bit about taxes. Middle-class families with two children will have an effective tax rate of 6.5 percent or lower under the new tax law. In addition CNBC stated that 92 percent of Arizona taxpayers will see a tax cut.
Now for the much quoted Congressional Budget Office. A stopped clock is right twice a day, but the CBO has never been right. They are using Obama-era gross domestic product of 1.88 percent for their projected 10-year deficit of $1.3 trillion. But the economy grew at 3 percent and 3.2 percent in the second and third quarter. It will be somewhere in the threes for the fourth quarter.
Additionally, Bank of America projects a 12 percent increase in the Standard & Poor’s 500 index, which would mean that a train with box cars full of hundred dollar bills will arrive at the Treasury in the first quarters of 2018 and 19. Also the Federal Reserve projects GDP at 2.5 percent in 2018. If this continues, the $1.3 trillion projection will be wiped out.
Lastly, don’t forget the thousands receiving a bonus and the tens of thousands getting new full-time jobs with full benefits thanks to the tax cuts to businesses.
This is a good thing.