The best way to descrive the effect of the tax cut bill that just passed will have on our already improving economy is to think of it as the difference between Steelers QB Ben Roethlisberger and New England Patriots Quarterback Tom Brady.
By any standard Ben Roethlisberger is a great quarterback. His stats are impressive. He has thrown for over 4000 yards five times, has thrown 25 or more touchdowns a season seven times, had seasons with a QB rating over 100 three times, thrown less than 10 interceptions a season 4 times. Counting this season He has led the Steelers to ten playoff appearances, seven division titles and two Super Bowls both wins.
Any competent list of elite NFL quarterbacks over the last decade includes him and in different era a credible case could be made for listing him as said era’s top Quarterback.
But unfortunately for Big Ben this isn’t another era. It’s the Tom Brady era and as excellent as Roethlisberger’s stats are they pale before Brady’s. Tom has thrown for 4000 or more yards 9 times (over 5000 in 2011) He has thrown 25 or more touchdowns 13 times (including 50 in 2007) , ha seasons with a QB rating over 100 6 times (three seasons over 110), thrown less than 10 interceptions a season 7 times (only 2 last year)
And of course counting this season Tom Brady has led the Patriots to the Division every single year (15 seasons years) but one (2002) and has taken his team to the Superbowl seven times winning five.
Or to put it another way. While Ben Roethlisberger is a great quarterback, a Hall of Fame Quarterback, a quarterback any team would be proud to have, he is not even in the same league as Tom Brady who is the greatest and most successful Quarterback to ever play the game.
What does that have to do with the Trump Tax plan? Just this.
The Obama Economy was, put simply a disaster:
The latest numbers mean that Obama’s economic forecasters missed their growth targets every year that he was in office. And, once again, economists who had been promising that strong growth was just around the corner — most recently because of a relatively strong third quarter — had to eat crow.
It also means that GDP growth has not exceeded 3% for 11 straight years. . . .
And despite th predictions of naysayers and experts galore:
Jason Furman, who chaired the Council of Economic Advisers under President Barack Obama, told reporters earlier this year that the chances of reaching 3 percent growth over a decade were about 1 in 25 — which is what many political experts said was Trump’s chance of winning the election. Another Obama economist, Alan Krueger, called the 3 percent growth forecast “extremely rosy.”
Larry Summers, a top economic adviser to Obama, questioned the “standards of integrity” of the Trump economic team’s forecast for 3 percent (or more) growth. “I do not see how any examination of U.S. history could possibly support the Trump forecast as a reasonable expectation,” he wrote in The Washington Post.
It took Donald Trump less than one year to change this achieving the 3% economic growth that others have said was not possible
President Donald Trump’s goal of 3 percent growth has been realized in two of the three quarters since he took office, and economists say the trend can keep going for at least another quarter and possibly longer.
Third-quarter GDP grew by 3 percent, well above the 2.5 percent expected by economists surveyed by Thomson Reuters and below the 2.8 percent in the CNBC/Moody’s Rapid Update. The third-quarter number comes on top of 3.1 percent growth in the second quarter, making for the best back-to-back quarters since 2014 and ending a long streak of sluggish 2 percent growth.
To put it one way. Trump’s first year Economic numbers are something to be proud of, particularly compared to Obama’s. Clearly above average and heading in the right direction. They are the Ben Roethlisberger of economic stats.
Now take that above average economy and add to it a tax plan that cuts corporate tax rates from 35% to 21% while cutting taxes on a resurgent middle class a package that produced this reactions from Germans:
“The tax competition will have a new dimension,” said Christoph Spengel, chairman of the corporate tax department at the University of Mannheim. Mr. Spengel, who is also a research associate at the Center for European Economic Research, and a group of tax experts at the university have done a detailed comparison of the two countries’ tax systems and published a report under the heading, “Germany loses out in US tax reform.”
Clemens Fuest, who heads the Ifo economic think tank, also said he believed German business would suffer. “Investments and jobs will migrate to the US,” he said.
Once the full effect of this tax bill hits we will go from a Roethlisberger economy to a Brady economy and leave that solid 3% growth in the dust.
Get ready folks, golden days are ahead.