President Donald Trump is promising the biggest tax cut the country has seen in thirty-six years. Texas Public Policy Foundation Economist Vance Ginn says those tax cuts ago proved to be a big boost to the economy.
“They led to more economic growth. There were periods we were seeing rates of 4% economic growth per year,” Ginn said.
But that doesn't mean the same thing will happen this time around; he says there are different factors now.
“There is a lower labor participation rate today. That could influence things,” Ginn stated.
The Trump tax cut could cut the average tax bill by about three thousand dollars. Ginn says that would help your bottom line.
“Anytime we can see increasing disposable incomes rise that’s a good thing. I think it’s important to remember that what grows the economy is not spending; it’s really the production side,” Ginn explained.
That said analysis of the plan Trump put out during the campaign showed the middle fifth of the income distribution would only be saving about a thousand dollars on their tax bill.