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Goldman Sachs doesn't think the Republican tax bill would be a big boost to the US economy
Bob Bryan | Dec. 4, 2017 | Business Insider
Before Senate Republicans passed their tax bill early Saturday, GOP leaders boasted that it would be a huge boon for the US economy.
Goldman Sachs does not agree.
Alec Phillips and Blake Taylor, analysts on Goldman's US economic-analysis team, say that the Senate version of the tax bill, called the Tax Cuts and Jobs Act, would slightly boost growth in the short term — but that the boost would quickly fade.
"We have increased our estimate of the growth effects of the legislation slightly, to around 0.3pp in 2018 and 2019," Phillips and Taylor said in a note to clients on Monday. "This reflects the slightly larger amount of tax cuts in the Senate plan following revisions, and our expectations regarding the eventual compromise."
The 0.3-percentage-point estimate is slightly higher than most expectations but well below Republicans' assurances.
Read more at businessinsider.com
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