Larry Summers, the former Treasury secretary in addition to key economic advisor to President Barack Obama, ripped the Trump administration Thursday for “real sacrifices of seriousness in addition to credibility” about its tax reform proposal.
“We’ve seen an unprecedented level of factual errors in addition to statements that will aren’t supported by any economic analysis through the administration on a range of questions,” Summers said during an appearance on CNBC’s “Fast Money Halftime Report.”
“In particular, the claims that will This kind of will produce enough growth to pay for itself in terms of the tax reform bill in addition to the claims that will This kind of will be distributionally neutral in addition to won’t favor those with high incomes I think are indefensible in addition to not supported by economists.”
Summers has been out front in his criticism of the White House’s proposals to cut taxes for corporations in addition to individuals in addition to simplify the system. Administration officials have said the tax cuts will pay for themselves through the economic growth they will generate.
Earlier This kind of year, Summers, who led the Treasury under President Bill Clinton, said he would certainly have resigned had he been asked to champion such a plan.
In Thursday’s interview, he went back on the attack.
“I never spoke This kind of way about the proposals of the Bush administration, yet I do think there are some real sacrifices of seriousness in addition to credibility from the policy process from the way that will tax change will be being advocated,” Summers said.
Current Treasury Secretary Stephen Mnuchin earlier from the day said he remains confident that will even if the tax cuts cost $1.5 trillion — he believes the cost will be closer to $1 trillion — the economy soon will be growing at a 3 percent clip, which will offset the decline in revenue.
yet Summers said the big beneficiary will be the wealthiest Americans, who will pay lower taxes in addition to then get more money returned to them if the repatriation part of the tax plan goes through. The administration wants to allow companies to bring the $2.5 trillion in profits they have stashed overseas back home for a one-time tax at a reduced rate.
Repatriation “will help people with 401(k)s, yet people look at the actual data in addition to what the actual data shows will be that will the very large majority of all the stockholding will be institutions like Harvard in addition to the like in addition to people who are from the top 1 percent of the income distribution,” he said.
Summers called for a return to traditional accounting of how tax plans will affect the budget.
“This kind of will be the first administration that will believes if you’re rich in addition to you make an assumption, that will constitutes fact,” he said.
“All I’m asking will be that will we use the same discipline that will we always have rather than move back to the earth of assertion,” he added. “This kind of’s analysis versus vague claim that will will be my problem.”
The White House did not immediately respond to a request for comment.