Thursday, April 27, 2017
Former Treasury Secretary Summers: I would have quit rather than announce the absurd Trump tax proposal."
President Donald Trump's plan to roll back taxes in the hope that doing so will generate robust economic growth with little impact on debt and deficits is "absurd," former Treasury Secretary and White House economic advisor Larry Summers said.
In fact, Summers added in an interview with CNBC, had he been asked to present such a plan with the notion that it would pay for itself, he would have refused.
"If I had been asked by the White House to assert a proposition as demonstrably false as the claim that this plan would produce revenue, I would have resigned rather than put the credibility of the department behind a proposition that no one with real experience would believe was true," he said.
Trump really needs to shrink government, which he is not going to do. Thus his tax reform proposal is based on \the shaky Laffer curve notion put on steroids.
Murray Rothbard warned about the dubious Laffer Curve:
Once again, compared to Trump, the generally weak[policy analyst Summers looks like a serious economic commentator.
"Most presidential campaigns during the primaries, when they put out a tax plan, they put out more than one page. They put out some analysis, some models, some careful articulation of the proposal and estimate its effects," he said.
"There's none of that coming from the administration, and yet there's this confident statement that it will pay for itself," Summers added. "I don't know how they could possibly know without having done economic work."
"I just don't understand what could cause an administration to put its secretary of the Treasury in a position to assert something ... that is generally regarded by economists as absurd," he added.
at 1:32:00 PM