The massive tax cuts signed into law in December, which Republicans said would pay for themselves, will balloon the us deficit in years ahead, the Congressional Budget Office said on Monday, possibly hobbling President Donald Trump's future agenda.
The new CBO analysis projects the United States will see the federal deficit rise above $1 trillion a year within two years - earlier than had been previously expected.
Jeff Stein, The Washington Post •.
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.
But it could be worse because the CBO says its figures very likely underestimate the size of the deficit.
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Members of both parties further added to the deficit in March when they increased military and domestic spending by almost $300 billion over the next two years. "That percentage would be the largest since 1946 and well more than twice the average over the past five decades". The gap between spending and revenues will balloon over 1 trillion dollars in fiscal 2020 and keep expanding for years. No mention of the "voodoo economics" idea of dodgy economists that lower taxes generates higher spending and lower deficits.
Meanwhile, the House is scheduled to vote Thursday on a constitutional amendment that would prohibit Congress from spending more than the government takes in annually, unless a supermajority of both chambers votes to exceed those limits. The economic growth from the $1.5 trillion in tax cuts will add 0.7% on average to the nation's economic output over the coming decade, even though the president said they would pay for themselves.
Republicans and Democrats alike bemoaned the growing deficits Monday but offered opposing suggestions for how to deal with it. CBO attributes these economic trends to the three major laws mentioned above, along with rising federal budget deficits over the ten-year window. Trump has ruled out cuts to social security or Medicare and Republicans on Capitol Hill have failed to take steps against the deficit since Trump took office. Growth will be primarily driven by business investment, consumer spending and federal spending.
It warned that it would have "serious negative consequences" for the US. "The American people deserve a Congress that is focused squarely on helping the middle class, not patronizing Kabuki theatre - like sham "balanced budget" votes - from Republicans who blew up the deficit to benefit wealthy special interests".