Trump’s Problematic Math: Budget Plan Adds Growth, but Doesn’t Subtract Cost

The following article by Binyamin Applebaum was posted on the New York Times website May 23, 2017:

Eric Ueland, right, a Senate Budget Committee staff member, distributing the 2018 federal budget proposal on Capitol Hill on Tuesday. Credit Doug Mills/The New York Times

WASHINGTON — President Trump’s budget proposal, unveiled on Tuesday, purported to show the benefits of cutting taxes on businesses and consumers: By the end of the decade, faster growth could balance the federal budget.

The numbers looked great because the White House left out something essential: the cost.

When the government cuts taxes, it collects less money. That is the purpose of a tax cut. But Mr. Trump’s budget does not include any hint of a decrease in federal revenue. To the contrary, it projects that federal tax revenue will increase every year for the next decade. Continue reading “Trump’s Problematic Math: Budget Plan Adds Growth, but Doesn’t Subtract Cost”