Two Trillion Dollars Is Nothing When It Comes To MAGA

two trillion
The White House budget released on Tuesday appears to have double-counted more than two trillion dollars in estimated tax revenue. As such, the budget would not balance over 10-years (as promised), even if the U.S. economy were to hit sustained 3% growth (as projected by the White House, but literally no one else). This double-count is a big unforced error.

Two Trillion Whole Dollars

Trump’s budget anticipates around $2.06 trillion in extra federal revenue over the next decade, based on the aforementioned increase in economic growth. That new money then would be used to offset Trump’s proposed tax cuts, as the Administration previously said that the tax cuts would be revenue-neutral. Unfortunately, that same $2 trillion also is earmarked for closing budget gap.
As Larry Summers explains:

This error is akin to buying a company assuming that you can make investments that will raise profits, but then, in calculating the increased profits, counting the higher revenues while failing to account for the fact that the investments would actually cost some money to make. The revenue generated by the investments might exceed their cost (though the same is almost never true of tax cuts), but that does not change the fact that the investment has a cost that must be included in the accounting.

The response by the White House has not been reassuring.

Budget Director Mick Mulvaney:

“We did [the double count] on purpose… I’m aware of the criticisms and would simply come back and say there’s other places where we were probably overly conservative in our accounting. We stand by the numbers.”

Mulvaney’s statement is especially problematic. He basically admits they picked the growth number that would balance the budget and make their numbers work. He said they had to plug in a 3% GDP growth because if we are stuck at 1.6% we will never balance the budget. But he has no idea how the 3% growth number will be achieved. It’s smoke and mirrors without the mirrors.



KTB Editors

Articles, podcast and video from management. We are the whisper in the breeze.

You may also like...

17 Responses

  1. November 5, 2017


    […]Sites of interest we’ve a link to[…]

  2. November 6, 2017


    Here are some hyperlinks to sites that we link to due to the fact we feel they are really worth visiting.

  3. November 8, 2017

    طراحی سایت

    I’m truly loving the concept/design and style of your world wide web website. Do you at any time operate into any world wide web browser compatibility concerns? A tiny quantity of my blog audience have complained about my website not functioning correc…

  4. November 10, 2017

    فروش دوربین مدار بسته

    Fantastic weblog! Is your topic customized manufactured or did you download it from somewhere? A design and style like yours with a handful of basic adjustements would genuinely make my blog stand out. Please allow me know exactly where you obtained yo…

  5. November 10, 2017

    2018 mercedes c63s amg armytrix valvetronic exhaust

    […]although websites we backlink to beneath are considerably not connected to ours, we feel they’re basically really worth a go by means of, so possess a look[…]

  6. November 12, 2017


    […]the time to read or visit the content or web sites we have linked to below the[…]

  7. November 13, 2017

    receive sms for verication code

    […]very few websites that happen to become comprehensive beneath, from our point of view are undoubtedly well worth checking out[…]

  8. November 13, 2017


    […]always a major fan of linking to bloggers that I love but really don’t get a whole lot of link adore from[…]

  9. November 14, 2017

    adam and eve online coupons

    […]that will be the end of this write-up. Here you will discover some web sites that we consider you will enjoy, just click the hyperlinks over[…]

  10. November 14, 2017

    Its hard to find good help

    I am constantnly proclaiming that its hard to find quality help, but here is

  11. November 15, 2017

    the romance kit adam and eve

    […]we came across a cool internet site that you simply could possibly take pleasure in. Take a search if you want[…]

  12. November 15, 2017

    Dreary Day

    It was a dreary day here today, so I just took to messing around on the internet and found

  13. November 17, 2017

    discount sex toys

    […]usually posts some pretty intriguing stuff like this. If you’re new to this site[…]

  14. November 17, 2017

    best sext toys

    […]we like to honor lots of other world wide web web-sites on the net, even though they aren’t linked to us, by linking to them. Underneath are some webpages really worth checking out[…]

  15. November 17, 2017

    Sripatum university

    […]Here are some of the internet sites we suggest for our visitors[…]

  16. November 19, 2017

    Lithium Ion 18650 Battery

    […]we prefer to honor lots of other net sites on the net, even if they aren’t linked to us, by linking to them. Beneath are some webpages really worth checking out[…]

  17. November 19, 2017

    طراحی سایت

    remember to go to the internet sites we adhere to, this sort of as this a single certain, as it signifies our picks through the world wide web

Leave a Reply