Published: Fri, July 14, 2017
IT | By Jonathon Greene

Donald Trump made a $3.7 trillion mistake in his budget

Donald Trump made a $3.7 trillion mistake in his budget

The short video, issued by the White House, was released onto its YouTube channel.

The CBO estimated that Trump's budget would cause the federal budget deficit to shrink relative to the size of the economy over the next 10 years, ranging between 2.6 percent to 3.3 percent of gross domestic product during that period.

The CBO said Trump's decade-long spending plan would trim the current almost $20 trillion national debt by $3.3 trillion, not the $5.6 trillion the White House projected.

Trump's $4.1 trillion budget, sent to Congress in May, proposed to balance the budget by 2027.

The initial CBO score of the Senate GOP's health care plan to repeal and replace Obamacare, the Better Care Reconciliation Act, predicted that 22 million more Americans would be without insurance, yet reduce the deficit by $321 billion over the next decade.

The White House is likely to take the CBO projection of Trump's budget proposal with a grain of salt. "Almost all of that difference arises because the administration projects higher revenue collections - stemming mainly from a projection of faster economic growth".

"C.B.O.'s analysis shows the president's claim of a balanced budget is built on a house of cards, reinforced by economic growth rates that are far outside of the mainstream consensus and would be unprecedented given today's demographic realities", said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, a nonpartisan advocacy organization. The changes to Medicaid have been a point of political contention among Republican lawmakers. According to the White House the actual figure is just over 10m.

"While it does very well at times predicting things on budget - whether it's revenue or spending, we don't always agree that it does a great job predicting (health care) coverage", White House deputy press secretary Sarah Huckabee Sanders told reporters last month. Trump's spending and tax plans would reduce annual deficits by a cumulative total of $3.3 trillion over the coming decade, rather than the $5.6 trillion of total deficit reduction claimed by the administration.

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