For months, Republican lawmakers had been lauding former Treasury Secretary Lawrence Summers as a soothsayer.
Republicans have repeatedly cited former Treasury Secretary Lawrence Summers in recent months as a prescient expert on inflation and government spending. But they are silent now that he is urging passage of President Joe Biden’s $1.75 trillion jobs bill and undermining their talking points against it.
In a Washington Post column on Wednesday, Summers predicted that provisions in the Build Back Better plan that would crack down on wealthy tax cheats will bring in even more money than the Biden administration is predicting.
The Treasury Department has estimated that investing $80 billion more in IRS enforcement would bring in an additional $480 billion in revenue over the next decade in money already owed to the government but not paid by rich tax evaders.
“My judgment is that even Treasury is far too conservative,” Summers predicted. “This estimate is less than half of what I concluded, in work with Natasha Sarin (who is now at the Treasury Department), can be generated by an infusion of resources into the IRS of about the same size as proposed by the Build Back Better Act.” He further noted that other top economists have estimated the windfall might be as much as twice his own estimates.