NEW YORK (Reuters) - Slashing taxes may give the U.S. economy a
temporary boost but the €œsugar rush€� may cause deeper problems ahead,
investors at the Reuters Global Investment 2018 Outlook Summit in New
York said.

Joachim Fels, global economic advisor and a managing director at Pacific
Investment Management Co (Pimco), said a recession could be hastened if
Congress implemented tax cuts that overstimulate the economy, and used
up bullets that lawmakers could use to fight the next downturn. He said
it could €œpave the way for a short boom now ... but possibly a recession
in 2019 or 2020.€�

€œI dont think we need a tax cut at this stage,€� said Fels. €œA tax cut
at this stage is raising the risk of overstimulating the economy.€�

Both measures would add $1.5 trillion over 10 years to the annual budget
deficit and the $20 trillion national debt, according to congressional
tax analysts.

White House spokeswoman Sarah Sanders said on Thursday a new tax code
would be €œrocket fuel€� for the economy.

https://www.reuters.com/article/us-i...-idUSKBN1DH211
--
Bod

On Monday, January 29, 2018 at 7:32:16 AM UTC-5, Bod wrote:
NEW YORK (Reuters) - Slashing taxes may give the U.S. economy a
temporary boost but the €œsugar rush€� may cause deeper problems ahead,
investors at the Reuters Global Investment 2018 Outlook Summit in New
York said.

Joachim Fels, global economic advisor and a managing director at Pacific
Investment Management Co (Pimco), said a recession could be hastened if
Congress implemented tax cuts that overstimulate the economy, and used
up bullets that lawmakers could use to fight the next downturn. He said
it could €œpave the way for a short boom now ... but possibly a recession
in 2019 or 2020.€�

€œI dont think we need a tax cut at this stage,€� said Fels. €œA tax cut
at this stage is raising the risk of overstimulating the economy.€�

Both measures would add $1.5 trillion over 10 years to the annual budget
deficit and the $20 trillion national debt, according to congressional
tax analysts.

White House spokeswoman Sarah Sanders said on Thursday a new tax code
would be €œrocket fuel€� for the economy.

https://www.reuters.com/article/us-i...-idUSKBN1DH211
--
Bod

Precisely what I've warned about. We're cutting taxes, increasing the deficit,
when the economy is already doing OK. It's been steadily improving since 2009.
Tax cuts now are like pouring gas on the fire, increasing the national debt
by $1.5 tril, and then when there is a recession in a few years, then what?
We'll be running even larger deficits and cutting taxes again to stimulate
the economy. You can't pile up debt forever. They should have cut the
business tax, left the rest alone and in a couple years be looking at places
to raise some taxes, while controlling spending the whole time. It used to
be conservatives railed against the deficits and warned of the national debt.

On 01/29/2018 04:32 AM, Bod wrote:

Bod,

Stop believing this garbage.

This has been tried three times before in our history:
Truman, Kennedy, Reagan. It worked marvelously before
and it is working marvelously again. History
is on the side of freedom.

Socialism never works. History is not on its side.
Stop listening to the Swamp.

-T