White House chief economist Kevin Hassett on Friday rejected the argument that cutting taxes would fail to deliver economic growth and jobs, after being asked by people should expect "trickle down economics" should work.
In a briefing with reporters, Hassett said "trickle down" economics is the name people give to tax cuts when they don't favor those cuts.
"Trickle down economics is something that, I guess people who criticize the idea that taxes effect the economy will use to characterize approaches like the one that we're pursing," Hassett told reporters. "But I don't think that the idea that's celebrated by the non-partisan staff at the OECD, that if you have lower marginal rates you get economic growth, is voodoo economics or controversial at all."
"The fact is that, countries around the world have cut their corporate rates and had broad-based reforms like we're doing on the individual side, and then seen economic growth result," Hassett said.
"I don't think there's anybody who thinks that you'll get no growth or negative growth from this. Maybe there are a few people, but in every economic model I've seen, you get growth," he added. "Either a lot of growth or sometimes if it's a closed economy model, a little growth. But you get positive growth out of this, and that growth will benefit workers."
Hassett said the tax reform bill passed by the House this week contains all three of President Trump's must-have provisions: a 20 percent corporate tax rate, middle class tax cuts, and a simplification of the tax code.
He said the White House, which has spent weeks working with Congress to develop a tax reform plan that can pass by the end of the year, hopes to see the House and Senate versions of tax reform pass through "regular order."
Trump has touted the passage of the House tax reform bill as a victory. The president trekked across town to Capitol Hill on Thursday to meet with Republicans and stress the importance of the corporate tax cuts contained in their bill.