Trump’s ‘balanced’ budget relies on $2 trillion math error
The math in crafting the budget was seemingly too difficult for an administration embroiled in scandal. President Donald Trump promised that he would balance the budget for the first time in over a decade and he would do it without cutting spending for defense or Social Security. The numbers were flawed, however.
According to New York Magazine, Trump’s budget assumes a $2 trillion increase in revenue through economic growth that can’t be verified or supported by any estimations by anyone, anywhere. Even the Trump administration’s supposed economic growth wouldn’t pay for the $2 trillion error. Previously, Trump claimed his cuts would be paid for by the growth expected to come in, as a result of his tax breaks. The plan is akin to a credit card that has an interest rate that pays off your card as you spend money on it. The administration has double counted the growth.
Trump previously explained that his “biggest tax cut in history” would be revenue neutral because the growth it generates will be so substantial that the national debt will not balloon. Trump hasn’t clarified how the tax cuts would result in more than a 100 percent revenue growth.