POLITICO analysis: At $2.3 trillion cost, Trump tax cuts leave big gap

[DonViejo]

By DAVID ROGERS 02/28/2018 04:29 PM EST

Between new cost estimates and the White House’s own budget numbers, the wheels are coming off Republican claims that President Donald Trump’s tax cuts will pay for themselves by generating increased growth and government revenues over the next decade.

“Not only will this tax plan pay for itself but it will pay down debt,” Treasury Secretary Steven Mnuchin famously boasted last September. But his own department’s analysts now peg the 10 year-cost at $2.3 trillion given the administration’s assumption that tax breaks for individuals and large estates will be extended past 2025.

POLITICO’s own calculations, working entirely from data in the 2018 and 2019 budgets, indicates that the added revenues generated by the tax cuts themselves would fall substantially short of matching $2.3 trillion.

For the years 2018-2027, the shortfall ranges from $1 trillion to $1.3 trillion. Going a year further out into the future and measuring for 2019-2028, the picture improves, but the shortfall still is between about $700 billion to $1.1 trillion.

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https://www.politico.com/story/2018/02/28/tax-cuts-trump-gop-analysis-430781?lo=ap_a1

[Gothmog]

1. Tax cuts do not grown the economy or pay for themselves

[progree]

2. The Fed has other ideas - as the economy picks up further, they raise interest rates to tamp it back

down. As they already have five times since the 0 to 0.25% fed funds rate bottom. And higher interest rates overall of course raise the interest costs of the national debt, siphoning off more tax revenues to pay for that.