CNN’s Smerconish Hits Pro-Trump Economist Over Tax Cuts: ‘Doesn’t Seem to Be Working Out’
CNN host Michael Smerconish slammed conservative economist Arthur Laffer over the soaring deficits linked to the GOP’s tax cuts.
The tax bill was passed in 2017.
“Why, if the tax cuts will pay for themselves, are we having such problems with the debt and deficit? … The deficit grew 77% in the first four months of fiscal 2019 compared to the same period one year before,” Smerconish told Laffer Saturday morning on his show.
Then, referring to the fact Laffer first jotted down his ideas for the tax cuts on a napkin, he added: “The deficit grew 77 percent in the first four months of fiscal 2019 compared with the same period one year before. It doesn’t seem to be working out according to the napkin.”
Laffer insisted everything remained fine.
“Since the tax bill was passed on December 22, 2017, revenues are way up,” he said. “We’ve had a very strong economic growth, good employment growth, way above what people expected and the revenues are doing just fine.”
Laffer was an economic adviser to Trump’s presidential campaign in 2016. He is now slated to be awarded the Presidential Medal of Freedom.
Later in the segment, Smerconish argued that people in Rust Belt states that swung to elect Trump in 2016 haven’t seen the full benefits of the tax bill.
“They haven’t seen wages increased, they haven’t gotten a piece of the tax cut, have they? Won’t that be a problem for the president next cycle when they’re looking for their piece?” he asked.
Laffer said he can’t judge the politics of the situation, but argued low unemployment was the high point.
“The median wage doesn’t grow very much because you have all these low-income people coming back into the labor force, which is wonderful for them, wonderful for us,” he said.
The pro-Trump economist then further argued: “But what it does do is put a damper on the median wage growth. These growth rates of wages are just fine especially when you realize we’re having no inflation whatsoever.”
Watch above via CNN
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