The Globalist Authoritarians Are Playing With Fire
The Only Thing Democrats Won’t Stand Up for Is America
The Press Says Not All Billionaires Are Spending Equal, and Larry O'Donnell Negotiates...
Who's Defying Court Orders Again?
New Bill From Chip Roy to Protect Exotic Hunting Ranches Could Bolster Conservation
Injustice in Nashville
Fighting Against the Tide Of History
The Party of Hate
Time to Lower the Boom on Harvard
In Germany, the Government Wants to Decide What Is True
After Many Warnings, Trump Admin. Freezes Funding for Maine Over Refusal to Comply...
More Bad News Could Be Coming for Planned Parenthood
USCIS Stops Biden Gender Policy ‘Effective Immediately’
Details on Biden's Endorsement of Harris Shows How Much Dems Were in Disarray...
Does This New Poll Show Hopeful News for Israel?
Tipsheet

Kudlow Rejects CBO Projections About Trump Tax Cuts...Offers His Own Prediction

The Congressional Budget Office's projections for President Trump's tax cuts are not good. If it is enforced, we will be looking at the worst deficit levels since World War II, according to the agency's data.

Advertisement

The federal debt "is projected to be on a steadily rising trajectory throughout the coming decade—approaching 100 percent of gross domestic product by 2028," according to the CBO Director Keith Hall.

Turning to the budget projections, we estimate that the 2018 deficit will total $804 billion, $139 billion more than the $665 billion shortfall recorded in 2017. In our projections, budget deficits continue increasing after 2018. As deficits accumulate, debt held by the public rises from 78 percent of GDP (or $16 trillion) at the end of 2018 to 96 percent of GDP (or $29 trillion) by 2028. That percentage would be the largest since 1946 and well more than twice the average over the past five decades.

Larry Kudlow, the newly appointed director of the National Economic Council, rejects these dire economic predictions. 

“The CBO, God bless ‘em, had a very lowball economic growth estimate,” Kudlow said on CNN. 

“We don’t believe” that GDP growth will be lower than 2 percent. 

“Our view is lower tax rates, particularly business, create invective to invest and work,” he explained. “I think we’re going to pick up productivity and wages. So that gives you an entirely different baseline.” 

Advertisement

CNN’s Erin Burnett tried to catch Kudlow in a net of hypocrisy. She presented him with a clip of himself from 2009, when he criticized President Obama for deficit projections. 

"What’s changed?" she wondered.

The Obama plan “was all spending,” he explained. “That’s not a growth prescription.”

Although Trump just signed a spending bill, it’s “nothing like the Obama stimulus package.”

Conservatives' distrust with the CBO is understandable. Remember when the agency's projections for Obamacare enrollment was off by a matter of millions?

In an interview with radio host Hugh Hewitt, Kudlow predicted that GDP growth is going to be "3 percent or better" in 2018. That's largely due to the tax cuts which have "stimulated investment spending and provided new incentives" for businesses.

Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos

Advertisement
Advertisement
Advertisement