Trump administration calls for tax cuts, infrastructure plan in annual economic report

News

WASHINGTON (NEXSTAR) – President Trump’s top economists are praising the success of his fiscal policies, but their latest report shows the economy may not grow as much this year as the president has promised.

The Council of Economic Advisers (CEA) released their annual Economic Report of the President Thursday.

“We have accelerated growth in the Trump economy,” said Tomas Philipson, the acting CEA chairman. 

Philipson said the findings show the current economy isn’t just a continuation of the growth under the Obama administration.

“Everyone across town said it would be pretty tepid growth,” he said. “But what happened with our policies, we basically shattered that continuation as predicted by most economists.”

The report predicts the economy will continue to grow this year by about two percent, which is still short of President Trump’s three percent goal since his 2016 campaign. To get to that point, Philipson said Congress needs to pass major infrastructure spending and additional tax cuts.

But during an election year with a Democrat-controlled House, the proposals don’t have a good chance of passing unless the president locks down a 2020 win.

“That’s like pushing on a noodle,” said Andres Vinelli, the vice president of economic policy for the Center for American Progress. “Those tax cuts are not trickling down to the economy.”

Vinelli said increasing minimum wage and overtime eligibility would have a bigger impact.

“They paint a very rosy picture, but what we see is that families are stretched, workers are stuck in low-quality jobs and businesses are just not investing for the future,” Vinelli said.

Link to the report: https://www.whitehouse.gov/wp-content/uploads/2020/02/2020-Economic-Report-of-the-President-WHCEA.pdf

Copyright 2021 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Don't Miss

Trending Stories