The Forces that Will Impact the American Economy and Therefore, the Land Market in 2019 – Week 1

Real Economics:

The 2017 Tax Act is such a positive economic force it is underpinning the American (and Global) economy along with the American financial markets. The recent turmoil reflects that as The Fed works to “normalize” the functioning of the American financial markets. Our financial markets would have collapsed recently except for the 2017 Tax Act.

 

Additionally, the tax cuts are actually paying for themselves. Steven Moore of the Heritage Foundation, in an article dated September 19, 2018, highlighted the fact that comparing the typically anti-Republican Congressional Budget Office’s (CBO) economic forecast issued in June of 2017, versus the one they issued in August of 2018, after the 2017 Tax Act showed a remarkable, positive difference.

 

A summary of his article is that the CBO estimated increased GDP over the next decade will be around $6 Trillion higher. Given the fact that about 18% of the GDP is collected as federal taxes, that represents a $1.1T increase in federal taxes.  The estimated cost of the corporate tax cut is about $500B.  Ignore the self-serving politicians and talking heads that spout venom about the first year’s results of the 2017 Tax Act.

 

Growing the American economy is the only positive possible solution to our economic challenges.  The 2017 Tax Law gives us that benefit.  The problem is not that taxes aren’t increasing, it is that our government spending is increasing faster.