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Top Economists Agree: Tax Reform Will Lead to Substantial Economic Growth

Washington – Treasury Secretary Steven T. Mnuchin received a letter Saturday from nine of the nation’s leading economists addressing the implications of tax reform for economic growth.

 
“We are very encouraged that findings by this preeminent group of economists supports our strong belief that the tax reform proposals before Congress will lead to substantial economic growth,” Secretary Mnuchin said.
 
The letter states that 30 basis points is a fair estimate of the incremental annual growth that will result from corporate tax reform.  Additionally, the letter notes that with permanent full expensing, 40 basis points would be a fair estimate.
 
The letter further states that other components of tax reform, such as reducing rates for pass through businesses and individuals, will increase growth above this level. 
 
The letter’s signers are:   
  • Robert J. Barro, Paul M. Warburg Professor of Economics, Harvard University
  • Michael J. Boskin, Tully M. Friedman Professor of Economics, Stanford University; Chairman of the Council of Economic Advisers under President George H.W. Bush
  • John Cogan, Leonard and Shirley Ely Senior Fellow, Hoover Institution, Stanford University; Deputy Director of the Office of Management and Budget under President Ronald Reagan
  • Douglas Holtz-Eakin, President, American Action Forum, former director of the Congressional Budget Office
  • Glenn Hubbard, Dean and Russell L. Carson Professor of Finance and Economics (Graduate School of Business) and Professor of Economics (Arts and Sciences), Columbia University; Chairman of the Council of Economic Advisers under President George W. Bush
  • Lawrence B. Lindsey, President and Chief Executive Officer, The Lindsey Group; Director of the National Economic Council under President George W. Bush
  • Harvey S. Rosen, John L. Weinberg Professor of Economics and Business Policy, Princeton University; Chairman of the Council of Economic Advisers under President George W. Bush
  • George P. Shultz, Thomas W. and Susan B. Ford Distinguished Fellow, Hoover Institution, Stanford University; Secretary of State under President Ronald Reagan; Secretary of the Treasury under President Richard Nixon
  • John. B. Taylor, Mary and Robert Raymond Professor of Economics, Stanford University; Undersecretary of the Treasury for International Affairs under President George W. Bush
                                       
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