Gross Domestic Product

Trump's Candy Land School of Tax Reform

Trump's Candy Land School of Tax Reform

The Republican Party is devoted to tax reform, by which it really means tax cuts, but underneath this apparent laser-like focus lie conflicting schools of thought. The one embraced by President Trump is the Candy Land School.

The Candy Land School argues that tax cuts are always good, and that resulting government deficits are inconsequential, ostensibly because those tax cuts will trigger unprecedented economic growth that in turn will yield even higher tax revenues. It promises gifts for all today, and assumes away tomorrow.

Empirical evidence from the last several decades points to the conclusion that changes in U.S. tax rates do not map neatly onto the path of economic...

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