The trillion dollar myth

via The Washington Times by Stephen Moore 

There is an old saying that you can’t teach an old dog new tricks, and we’ve learned that again with the Congressional Budget Office and its latest highly misleading fiscal forecast.

For years, we’ve been trying to get the CBO to use real-world scoring that reflects how businesses, workers and financial markets react to changes in tax rates. But no go.

This is why the left is having a field day with the CBO forecast that deficits under President Trump will average a trillion dollars a year for the next decade. This is supposed to be a result of Mr. Trump’s tax cuts, but hold on here. Take a look at the nearby chart. It shows the deficit forecast with and without the tax cuts. They are effectively the same.

Mr. Trump didn’t create $1 trillion deficits, he inherited them from the grand maestro of debt spending, Barack Obama. President Obama invented and then perfected the concept of 13-digit borrowing. His deficits in his first term reached $1.5 trillion — an Olympic record of fiscal recklessness.

Is there anything more hypocritical than liberals, who supported Mr. Obama’s policies that ran the debt from about $11 trillion to almost $20 trillion, now fainting over runaway deficit spending? Yes, Chuck Schumer, there is gambling going on here at this casino.

The CBO says that the deficit will be about $1.5 trillion higher because of policy changes. Almost 40 percent of that is the inexcusable omnibus spending bill — a bipartisan raid of the federal cookie jar.

About $1 trillion of the higher borrowing over 10 years is due to the tax cut. By the way, this is the lowest estimate for the “cost” of the tax cut, we’ve seen. That $1 trillion revenue loss is out of almost $40 trillion of expected revenue. That’s a 2.5 percent tax cut — which is hardly the fire hose of lost revenue that is being depicted.

At the very least we can dispense with the hyper-inflated rhetoric of $3, $4 and $5 trillion debt increases due to the tax cut — that are thrown around in the media from liberal interest groups.

The complete story here > The trillion dollar myth


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