Remember President Trump’s
2019 budget — that big document released in February and then immediately
dismissed or ignored? Well, a new analysis released Thursday by the nonpartisan
Congressional Budget Office finds that the president’s proposal won’t rein in
rising deficits like the White House claims.
CBO estimates that, over the
10 years from 2019 to 2028, the Trump budget request would cut the deficit by
$2.9 trillion compared to the current baseline. The White House estimated that
the deficit reduction over that time would total $5.2 trillion.
The White House had
estimated that the deficit would be $450 billion in 2027 and $445 billion in
2028. CBO, by contrast, sees deficits of $965 billion and $1.1 trillion for
those years under the Trump budget.
In all, CBO says Trump's
budget would result in cumulative deficits of $9.5 trillion over the next
decade compared to $7.2 trillion estimated by the White House.
Under the president’s
budget, federal debt held by the public would rise from about 78 percent of GDP
this year to 86 percent in 2028. That’s lower than the 96 percent CBO
projects in its current baseline, but higher than the 73 percent the White
House had estimated.
The bottom line: The
big differences between CBO’s numbers and those from the White House Office of
Management and Budget are mostly the result of vastly different economic
assumptions, according to the Committee for a Responsible Federal Budget: “OMB
projects real GDP growth averaging 3 percent over the next decade while
CBO's projects an average of 1.8 percent. Largely as a result, CBO estimates
$1.95 trillion less in revenue than OMB – which constitutes 85 percent of the
total difference over 2019 to 2028.”
for the original article from Yahoo Finance.