by Alex Burns and Paul Waldman, December 11, 2018The Federal Reserve is taking aim at the “pay your taxes” campaign that is making its way to the 2016 election, announcing that the central bank will no longer support the pay-your-tax scheme.
The move comes after President-elect Donald Trump has indicated that he would not sign the long-awaited tax overhaul bill, a move that would have forced the Fed to take the issue off its books.
“While we have not yet completed our analysis of the economic impact of a tax cut, we expect that it would increase economic activity, create jobs, and strengthen the recovery,” the Fed said in a statement.
According to the Federal Reserve, the policy has a cost: It has cost the economy $17.6 trillion over the past three years.
The central bank’s policy is designed to encourage people to pay more tax to the government.
“We have no reason to believe that such a tax-deductible tax plan would lead to an increase in revenue,” the statement said.
However, Trump and other GOP presidential candidates have repeatedly claimed that a tax overhaul would cause the economy to tank and that paying taxes is bad for the U.S. economy.
Trump, for instance, has said the federal government is on the verge of “national bankruptcy.”
“I believe that tax cuts are a bad idea for the country.
It’s a bad thing,” he said in August.
“It’s not good for our country.
They’re not going to get us out of the hole we’re in.
I think we’re going to go down.”
Meanwhile, the White House has said that it plans to sign a tax reform bill, although no date has been set.