Tax reform plans proposed by President Donald Trump and House Speaker Paul Ryan will provide “some stimulus” that could get economic growth to about two-and-a-half percent, but “it’s a stretch” to think the numbers could reach three percent, former Treasury Secretary Robert Rubin said Thursday.
“Our basic rate of growth this year year, next year is somewhere around 2 to 2 1/4 percent, though people are lowering their estimates lately,” Rubin, who served under former President Bill Clinton, told CNBC’s “Squawk Box” program.
“I think we’re constrained by the ability of labor, by the labor supply. My guess would be, you can get to 2 percent, 2.5 percent.”
Meanwhile, there is also the question of how the tax cuts called for in the plans will be funded, Rubin said.
“There’s always been enthusiasm by the Republican Party for tax cuts and also in the Democratic Party for tax cuts,” said Rubin. “I