Posted on 04/09/2018 12:02:49 PM PDT by GIdget2004
The GOP's signature tax law is projected to increase the national debt by $1.9 trillion between 2018 and 2028, according to a new report by the Congressional Budget Office.
According to the report, the tax law would cost the government $2.3 trillion in revenues, but economic growth would offset that figure by about $461 billion.
At 11 years, the report covers a slightly longer time period than the usual 10-year projections, but even accounting for just the first decade, the figure remains around $1.9 trillion.
Some Republicans argued vociferously during the tax debate that tax cuts in the bill would pay for themselves, with Treasury Secretary Steve Mnuchin going so far as to say that they would ultimately reduce the national debt and deficits.
Others estimated that a dynamic score of the tax law — one that incorporated macroeconomic effects — would reduce the $1.5 trillion cost of the tax cut down to $1 trillion in added debt.
One reason the new CBO estimate may be higher is an expectation that interest rates will rise faster than previously expected, which increases the costs of servicing the debt.
In its 11-year estimate, CBO estimated that interest payments would account fo $582 billion of the $1.9 trillion total deficit increase.
(Excerpt) Read more at thehill.com ...
My attitude is that it is either that or become Venezuela. The writing has been on the wall for decades. We’ve been living off the credit cards ever since we finished getting rich rebuilding the rest of the world and they started competing with us.
It’s this or the kind of austerity that would get a politician tarred and feathered for even mentioning it. So it’s this...
Worthless report. CBO uses static model, not dynamic.
VS 10 trillion because of Obama.
Exactly—and the MSM willingly mislead with it.
CBO hasn’t been right about anything yet. Why should we care what they say now?
The cough, “non-partisan” CBO. The same one that told us what a wonderful deficit reducer Obamacare would be.
Then we have no choice but to cut welfare spending and foreign aid...and spending on illegals.
Static models are quite useful for the shrinking economy zero sum games which the libtards play. For growing economies, not so much.
The cough, “non-partisan” CBO. The same one that told us what a wonderful deficit reducer Obamacare would be.
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Yes. obummercare was a great piece of legislation that would insure everyone and reduce the debt. Boy, they were so close on that guess.
Maybe, just maybe, the LOSERS in government could freeze spending for 5 years and allow the economy to “catch up” to the frenzy of government spending?
The CBO never takes into account a dynamic economy.
That would be a great idea!
CBO exists only to support money grabbers/taxes.
Well it would be nice if the GOP would be willing to cut SOME kind of spending to undermine this argument.
They fully funded NPR again, for cripes sake!!
Past time to clean house there. The SAME CBO that was completely silent about $1.3 trillion Omnibus spending bill NOW wants to send out a report blaming the resultant deficits on the Tax cuts?
The CBO also uses the assumptions given them by the requester. They basically just do the math.
Curious to know what effect you predict- as in “for every dollar cut, x-amount of dollars will increase or decrease” to the Treasury.
so say some holdover “deep staters”..................
Is the CBO still using Obama Math ?
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