CEA Chairman Kevin Hassett discusses tax reform and sustaining economic growth
The Chairman of the Council of Economic Advisors Kevin Hassett has been a leading economist in our country for over thirty years. I asked him which policies are making sure that our economy is as strong as it currently is. Here’s what he told me:
HASSETT: The biggest policy that's driving everything is that we made America a friendly place to operate a factory, again. And we used to be the highest corporate tax place on Earth and so you could—if you're a firm, a big multinational—you could build your plant to make iPhones over in Ireland or you could build it here in the U.S. and if you build it in Ireland you didn't have to pay any tax at all, practically. If you built it in the U.S. you had the highest tax on Earth. I think that the only historical precedent for this big of a turning point in economic history is Ronald Reagan.
BORIS: On tax cuts. So you're saying that the corporate tax cut has already caused this large growth. Let’s talking about the personal rates those were cut for a set amount of time—through 2026. Now there's discussion about making those cuts permanent. Where do you stand on that.?
HASSETT: Yeah, President Trump 100 percent wants to make the tax cuts for businesses and for individuals permanent. But we expect—fully expect—especially if Republicans win in the Fall, that we'll make all this stuff permanent. And I think that folks, if they look at their checks, their paychecks, they’ll see that the tax cuts are having a really big effect on their take home pay. But I think that what's going to happen is that they're really going to see the biggest effect when they do their taxes next year because don't forget the thing you file next April is the tax for this year.
Here's the Bottom Line: the historic tax cuts signed by President Trump last year are a leading reason for the economic prosperity we are currently experiencing. Let’s hope that those tax cuts are made permanent, so we can ensure long-term sustainable economic growth in our country.
EDITOR'S NOTE: Boris Epshteyn formerly served as a Senior Advisor to the Trump Campaign and served in the White House as Special Assistant to The President and Assistant Communications Director for Surrogate Operations