White House says tax cuts could add $1.2T to US economy - WRCBtv.com | Chattanooga News, Weather & Sports

White House says tax cuts could add $1.2T to US economy

Posted: Updated:

By JOSH BOAK
AP Economics Writer

WASHINGTON (AP) - President Donald Trump's top economist is doubling down on claims that corporate tax cuts would spark economic growth and boost incomes.

Kevin Hassett is chairman of the White House Council of Economic Advisers. Hassett says the plan to slash the corporate tax rate from 35 percent to 20 percent could increase the size of the U.S. economy by $700 billion, to $1.2 trillion over a decade.

Hassett also says academic research suggests the lower rates could slash the U.S. trade gap in half, since companies would have less of an incentive to book their profits overseas.

The new report affirms earlier White House analysis that the lower rates would cause average household incomes to eventually rise $4,000 a year - a claim that drew criticism from many economists.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • NewsMore>>

  • AP-NORC poll: Privacy debacle prompts social-media changes

    AP-NORC poll: Privacy debacle prompts social-media changes

    Tuesday, April 24 2018 8:15 AM EDT2018-04-24 12:15:54 GMT
    Thursday, April 26 2018 3:10 AM EDT2018-04-26 07:10:27 GMT
    (AP Photo/Jeff Chiu, File). FILE - In this March 26, 2018, file photo, a man poses for photos in front of a computer showing Facebook ad preferences pages in San Francisco. If you’ve made changes to how you use social media since Facebook’s Cambridge A...(AP Photo/Jeff Chiu, File). FILE - In this March 26, 2018, file photo, a man poses for photos in front of a computer showing Facebook ad preferences pages in San Francisco. If you’ve made changes to how you use social media since Facebook’s Cambridge A...
    AP-NORC poll: Facebook's privacy debacle prompts social-media cutbacks.More
    AP-NORC poll: Facebook's privacy debacle prompts social-media cutbacks.More
  • Opioid treatment gap in Medicare: methadone clinics

    Opioid treatment gap in Medicare: methadone clinics

    Tuesday, April 24 2018 3:56 AM EDT2018-04-24 07:56:11 GMT
    Thursday, April 26 2018 1:52 AM EDT2018-04-26 05:52:09 GMT
    (AP Photo/Kevin D. Liles, File). FILE - In this March 7, 2017, file photo, the CEO of a methadone clinic holds a 35 mg liquid dose of methadone in Rossville, Ga. The drug is the oldest and most effective of approved medications used to treat opioid add...(AP Photo/Kevin D. Liles, File). FILE - In this March 7, 2017, file photo, the CEO of a methadone clinic holds a 35 mg liquid dose of methadone in Rossville, Ga. The drug is the oldest and most effective of approved medications used to treat opioid add...
    Opioid overdoses killed 1,354 Americans ages 65 and older in 2016, but Medicare doesn't cover the oldest proven treatment for opioid addiction: methadone.More
    Opioid overdoses killed 1,354 Americans ages 65 and older in 2016, but Medicare doesn't cover the oldest proven treatment for opioid addiction: methadone.More
  • More allegations emerge on VA pick as nomination falters

    More allegations emerge on VA pick as nomination falters

    Wednesday, April 25 2018 12:47 AM EDT2018-04-25 04:47:03 GMT
    Thursday, April 26 2018 12:40 AM EDT2018-04-26 04:40:31 GMT
    (AP Photo/J. Scott Applewhite). Rear Adm. Ronny Jackson, President Donald Trump's choice to be secretary of the Department of Veterans Affairs, leaves a Senate office building after meeting individually with some members of the committee that would vet...(AP Photo/J. Scott Applewhite). Rear Adm. Ronny Jackson, President Donald Trump's choice to be secretary of the Department of Veterans Affairs, leaves a Senate office building after meeting individually with some members of the committee that would vet...
    Trump sends mixed signals about the future of his nominee to lead the Department of Veterans Affairs.More
    Trump sends mixed signals about the future of his nominee to lead the Department of Veterans Affairs.More
Powered by Frankly