Congress absolutely refuses to live within it’s means.
STILL WINNING!
The Laffer curve holds true about aggregate tax income rising in the presence of tax cuts. It is the spending side of the equation that is going to get us.
The Keynesian train rolls on. Low taxes with massive Government spending. Ya can’t cut debt doing that.
And he can get it, if only he can prevent the Fed from raising interest rates every quarter.
“A Trillion-Dollar Blunder”
Obama was a multi-trillion dollar blunder.
The CBO never gets numbers right. By their own policies, they can’t do real investigation and calculations. They have to abide by whatever algorithms given to them by the person making the request.
So if I liberal asks the CBO to analyze a tax policy, it’ll use a static tax perspective like Dims think. If a libertarian/fiscal conservative asks the CBO to analyze the same tax policy, it’ll use a dynamic model (respecting the Laffer curve) because that’s how it’ll be asked to do it.
That’s why in the pre-lude to Obamacare, the CBO would one day say it’s horrible then the next day say it’s awesome. It always depends on who makes the request of the CBO and how the calculations are asked to be done.
“CBO found the economy was stronger last year than previously estimated, and that puts a higher price tag on the tax cuts because more people would otherwise be paying higher rates this year.”
That really is incredible! The tax cuts “cost” the government more money than it would have gotten if they kept taxes high but the growth magically appeared anyway??
By this logic college costs much more than you think, because you give up 4 years of income you would have made if you got the same higher-earning job without going to college.
“Trump’s tax cut is only 9 months old so it is too early to say it is paying for itself. But already well over half the projected cost has evaporated because of higher growth. If we stay on this 3 to 4 percent path for another couple of years, the flood of added revenues will mean smaller deficits and much smaller debt levels relative to GDP.”
I don’t care how much someone likes or dislikes Trump as a person, or how much they agree or disagree with his cabinet picks, judicial picks, etc. NO ONE can seriously dispute that this businessman extraordinaire understands how to get the economy moving - because he has already proven that he’s better at it than any President in living memory.
Notice how burgeoning tariff revenue IS NOT EVEN MENTIONED.
Exactly what I said would happen.
I love it when a plan comes together.
p
In addition, we have been losing about a trillion dollars a year in trade deficits; while equalizing that imbalance does not affect the govt debt, it does affect our annual economic deficits, which adds to economic growth in various ways. It is stunning to see how quickly the economy is turning around - proof that much money has been sitting on the sidelines, or cached off shore, in rsponse to the Obama / Harvard economic disaster.
The CBO has been a partisan hack office for a long time - so much so that one wonders if they even understand how taxes affect the economy. They foster the propaganda that the economy is a 'pie' and the more that one entity gets of that pie, the less the rest can have. If that were true, we would still have the same economy we had after WWII. That would be true if we were still on the gold standard. It is good to back up the dollar with gold, but it has to have a growth dynamic, not a constant 1:1 type ratio... we have much greater intrinsic value than gold alone.
Money is taxed when it is moved; money sitting in a can cannot be taxed directly. Lowering taxes motivates more economic activity (movement) which raises more govt. revenues. The CBO never seems to have grasped this true dynamic.