Trump Budget Would Shrink Deficits by One-Third by 2027, CBO Says

Laverne Mann
July 14, 2017

The White House was forced to delete and reissue a video that attacked the inaccuracy of the Congressional Budget Office after it misspelled "inaccurately".

The White House projected its budget would lead to 3% annualized economic growth, as many economists noted at the time using some funky math to get there. Congress is charged with crafting the government budget and largely ignored Trump's recommendations when it passed a continuing resolution to temporarily fund the government earlier this year.

Under the President's proposals, budget deficits from 2018 through 2027 would total almost one-third less than those in CBO's baseline projections, ranging between 2.6 percent and 3.3 percent of GDP, down from 3.6 percent in 2017.

The deficit would reach $720 billion by 2027.

"The reduction in deficits and debt under the president's budget would be achieved by decreasing both mandatory and discretionary spending significantly compared with projections under current law", the CBO said.

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Trump's May budget submission proposed jarring, politically unrealistic cuts to the social safety net for the poor and a swath of other domestic programs.

The CBO said did not take into account all of Trump's proposals that may affect the economy because "the details on numerous proposed policies are not available at this time".

The analysis came as the administration and Republicans controlling the House are struggling to unite Republicans behind an alternative congressional budget plan that's a prerequisite for a hoped-for tax reform effort this fall.

There was no immediate reaction to the report from the Trump administration. The changes to Medicaid have been a point of political contention among Republican lawmakers. The White House responded by criticizing the accuracy of the CBO, saying that it "innaccurately [sic] estimated" that 25 million Americans would be covered by Obamacare. According to the White House the actual figure is just over 10m. 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.

When President Trump released his 2018 budget proposals - marked by trillions in spending cuts - the White House claimed it would balance the budget in a decade.

Other reports by MaliBehiribAe

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