Remember how human passthrough, possible warlock and actual Treasury Secretary Steve Mnuchin kept telling everyone that his tax reform plan is a magical document that provides massive tax cuts yet also manages to be deficit neutral because it will create economic growth the likes of which the world has never seen?
Mnooks has guaranteed so much growth, in fact, that he has even told everyone that this tax plan will make the stock market grow forever and create a future in which the average American household income is at least a few million dollars a year. In his fervent desire to please the man that we can only assume he calls "Papa" at this point, Mnuchin has essentially promised the moon and the stars to get this tax cut force fed through Congress before the president and his family cut into their overcooked White House turkey on Thanksgiving.
The Treasury Secretary's rhetoric has been so inane and ridiculous that Gary Cohn was left to speak honestly about the plan...and came off looking terrible.
But with the tax plan coming into clearer focus, actual economists are being allowed to get a good look at this thing and see what Mnuchin sees. Today, the president's alma mater [undergrad, he has no MBA despite trying to make everyone think he does] Wharton, scored the effects of the new house tax plan, and found that - despite his smile and charm - Mnuchin might not be very magical after all.
The House Tax Cuts and Jobs Act is projected to reduce federal tax revenues between $1.5 trillion (high initial return to capital) to $1.7 trillion (low initial return to capital). Debt rises by more, by about $2.0 trillion to $2.1 trillion, over this period, due to debt services. By 2040, revenue falls between $3.6 trillion and $4.4 trillion, whereas debt increases by $6.4 trillion to $6.9 trillion.
That's a lot of deficit. And it puts Mnuchin in the difficult position of walking back on some of his promises (and looking like a weak cuck) or insulting the economists who did this study as haters and fake news types. But since this is Wharton, he would also be dissing the very school that his lord and friend brags about attending with the frequency and urgency of a Tourette's sufferer.
So what we're left with is the president's beloved alma mater letting the world know that the presidents' unqualified Treasury Secretary is actually full of shit.
Oh, Stevie Mnooks, you haven't overpromised and underdelivered this badly since Entourage: The Movie.