Gary Cohn: Trade War Could Wipe Out Gains of GOP Tax Scam
But earlier today, his former top economic adviser Gary Cohn broke from the party line – throwing cold water on the Administration’s talking points and spotlighting the growing economic uncertainty facing families under the GOP’s policies.
Key excerpts below:
June 14, 2018
An escalating trade war could wipe out the benefits of the Republican tax law passed last fall, President Trump's former top economic adviser said Thursday.
Gary Cohn, who served as Trump's director of the National Economic Council, said that retaliatory tariffs between countries could drive up inflation and prompt American consumers to take on more debt, possibly pushing the country into another economic downturn.
“If you end up with a tariff battle, you will end up with price inflation, and you could end up with consumer debt,” Cohn, a former Goldman Sachs executive, said at a Washington Post event. “Those are all historic ingredients for an economic slowdown.”
Asked if the trade battle could erase the gains to the American economy from the tax law, Cohn said: "Yes, it could."
The Congressional Budget Office, Congress's non-partisan scorekeeper, said in April the tax law will cost the U.S. $1.3 trillion over the next 10 years, and more if you include the interest the government pays on new debt.