By Ylan Q. Mui December 29 at 5:07 PM
How great will America be under President Donald Trump? It depends on when you ask.
During the election, Trump pledged that he would oversee a rate of “tremendous” economic expansion as high as 6 percent. But he has moved the goal post several times since then, dialing back expectations.
Trump released the initial version of his plan to overhaul the nation’s tax code, during a news conference at Trump Tower in New York. His proposal slashed the corporate tax rate from 35 percent to 15 percent and collapsed individual tax rates into three brackets, with the highest rate falling from 39.5 percent to 25 percent.
During the news conference, Trump gave this forecast of how much his tax plan would boost growth:
“We're looking at a 3 percent, but we think it could be 5, it could even be 6. We're going to have growth that will be tremendous.”
Let’s dissect that for a moment. Trump first suggested that the impact of his tax plan — which the nonpartisan Tax Policy Center estimated would cost a whopping $10 trillion over the next decade — would boost growth only modestly to 3 percent. But he then dismissed that estimate as too low and provided another forecast of double that amount.