Yes, Virginia, You Can Cut Taxes And Deficits At The Same Time — Just Ask The CBO

Budget: President Trump’s budget plan doesn’t come close to balancing the books, according to the Congressional Budget Office. But it does cut the deficit in half, even while reducing taxes.
The CBO’s analysis of Trump’s budget says that it would, if enacted, produce a deficit of $720 billion in 2027, not the small surplus Trump claimed.
That’s what made the headlines.
But as if often the case, it’s what didn’t make the headlines — or get pundit tongues wagging — that matters.
In this case, it’s the fact that almost the entire difference between the CBO’s and Trump’s view is the result of different economic forecasts.
According to the CBO, Trump’s budget would cut spending by $4 trillion over the next decade, and cut taxes by $900 billion. That’s roughly in line with what Trump’s own budget projected.
However, the CBO assumes that real annual GDP growth will top out at 1.9% in 2020 and remain

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