Voodoo Reaganomics won't save Trump on the Hill | Larry Elliot

President's plan to slash corporation tax may have short-term benefits but Congress will want to know how he intends to make up lost revenue

Donald Trump's corporation tax cut is straight out of the Ronald Reagan playbook. According to the current occupant of the White House, the reduction from 35% to 15% will pay for itself because US companies will invest more.

The argument is that higher levels of investment will raise the growth rate and, in turn, raise corporate profits. Consequently, the tax take will be no different at 15% than it was at 35%.