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Past. should this be a reality? i don t think the high income investors have very much growth impact on the economy especially in the short run. and when the way he is of odd, i think the reason it hasn t been popular is the idea that if you cut taxes at the top, that will kind of have magic be in stock growth on the economy and it has been pretty much disproven. so i don t know if he has a legal authority to do it, i m not a lawyer, but i don t think that would have as big of an economic impact as he would li like. sandra: finally austin, what is on your radar? i know you dig into the numbers and you are watching this all incredibly closely. ....
Would raise your model, raising more than $1 trillion quite comfortably. what is the biggest difference between the assumptions in your model and assumptions in a joint tax committee? the joint committee uses a closed economy model assuming the united states the closed economy so anytime the government runs deficits that crowd out private borrowing, raises interest rates and adds to the borrowing costs and slows the economy. we have an open economy model assuming global capital markets won t be affected by a little bit of additional government borrowing which is why our models prove a lot more growth. paul: what about the argument of the deficit that it will increase the deficit by that amount, in the growth estimate which i understand the closed economy model, a crucial point you make but what about the growth impact of cutting the corporate rate like the bill ....
Growth impact of cutting the corporate rate like the bill proposes, expensing immediately at 100%, you have more growth credits and other models. we think capital matters and taxes on capital matters the most, the most sensitive factor in the economy because it is so mobile, when you lower the cost of capital you increase the amount of investment in the economy raising productivity, wages, living standards, all good for economic growth so those are the most positive aspects of the bill. they are the least politically popular but the most progrowth elements. leland: who wants to give a tax break to corporations? on the other hand if you get the economy growing everybody will benefit from the growth that follows it. one of the other complaints you hear from the democrats is equity and distribution, this ....