White House chief economic adviser Gary Cohn flip-flopped and admitted that the Trump tax plan does cut taxes for the wealthiest Americans after denying it for months.
Cohn, who used to work at Goldman Sachs, told CNBC:
It’s not our intention to give the wealthy a tax cut… I don’t believe that we’ve set out to create a tax cut for the wealthy. If someone’s getting a tax cut, I’m not upset that they’re getting a tax cut. I’m really not upset.
That contradicts what Cohn told ABC’s “Good Morning America” in September, noted POLITICO:
[The] wealthy are not getting a tax cut. When we’ve looked at the tax plan, and we’ve looked [at] what it does for Americans, we are very confident that Americans are getting a great deal here. We have also said that wealthy Americans are not getting a tax cut.
Cohn repeated the often-debunked claim from the Reagan administration that tax cuts for the rich will somehow magically “trickle-down through the economy” to the middle-class and poor.
Former Reagan policy adviser Bruce Bartlett recently debunked Reagan’s tax cuts and trickle-down-economics in The Washington Post:
[T]ax cuts became the GOP’s go-to solution for nearly every economic problem. Extravagant claims are made for any proposed tax cut… In reality, there’s no evidence that a tax cut now would spur growth.
…GOP tax mythology usually leaves out other factors that also contributed to growth in the 1980s: First was the sharp reduction in interest rates by the Federal Reserve. The fed funds rate fell by more than half, from about 19 percent in July 1981 to about 9 percent in November 1982.
Second, Reagan’s defense buildup and highway construction programs greatly increased the federal government’s purchases of goods and services. This is textbook Keynesian economics.