Edgar Fiedler, the late American economist, left a proverb: "A question asked 5 economists, you will get 5 different answers. If one person has studied at Harvard University, Then six. "
Recently, 137 economists from many universities in the United States issued an open letter, using the first half of the proverb as an opening statement, but they showed that they all share the same position this time. The joint letter supports the US tax reform and believes that the corporate tax cut to 20% is the top priority of the tax reform. This will create jobs, raise pay, improve the living standards of the American people, stimulate US economic growth, and the new contribution of economic growth will balance the tax deficit.
US President Trump has drawn a Christmas “finish line” to complete the tax reform, and the Republican Party is reconciling the differences between the Senate and the House plans. American economists have split into two factions. One week before the joint letter was sent out, the University of Chicago Booth School of Business surveyed 42 top economists and asked them to judge the impact of the tax reform. Many of these economists include Nobel laureates and leading figures in the economics branch.
But these 42 top economists are not very optimistic about the effect of tax reform-only one believes that tax reform will cause the US economy to grow substantially, and most of them are certain that tax reform will cause the US deficit to increase significantly. Among them, economics Nobel laureate Paul R. Krugman slammed the article as "the biggest tax reform scam in history".
Economics Nobel Laureate: "The Biggest Tax Reform Scam in History"
The expected success of the US tax reform is economic growth, and the harm is a soaring deficit. On both issues, the University of Chicago Booth School of Business surveyed 42 economists.
The survey put forward two judgments. One is that if the tax reform bill being finalized by the Senate and the House of Representatives becomes a reality, the US's gross domestic product (GDP) will increase significantly in the next 10 years.
On this issue, the economists surveyed were almost all pessimistic. Only one economist thought that GDP would increase significantly, 36% expressed uncertainty, and 52% disagreed or severely disagreed.
Behavioral economist Richard Thaler, who won the Nobel Prize this year, commented: "Apart from redistributing wealth, it's hard to see the effect of (tax reform)."