ECONOMY/ELECTION/GOP/TAXES/TRUMP AS PRESIDENT: “Republicans facing a tough midterm election season are pointing to the strong economy as proof their new tax law is working its magic. But as campaign ads tout swelling payrolls and lawmakers spotlight companies handing out employee bonuses, there’s little evidence the tax cuts are already having an impact across the economy, which was already humming even before the law was enacted…That hasn’t stopped the GOP from claiming credit. The economic dividends of the new law are central to their midterm plans, and they are anxious to talk up their biggest legislative accomplishment of the Trump administration…But in truth, economists say, it will be months, if not longer, before the effects begin to really show up in the economic data. And even then, many say, the evidence will be more ambiguous than lawmakers suggest. That’s because the economy was already strong before the law passed, so some of the good news would have happened even if the Tax Cuts and Jobs Act was never approved. They also see the economy getting a boost from a completely separate and largely overlooked law Congress recently OK’d: A nearly $400 billion spending increase opposed by many Republicans that some experts say will do more for growth, at least in the short term, than the tax cuts. People who monitor economic indicators say the changes have barely begun to register.”
-Brian Faler, “GOP tax cut not why economy is booming,” Politico, May 14, 2018 5:01 am