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VOL. 42 | NO. 21 | Friday, May 25, 2018
CBO analysis: Trump budget will increase deficit by $9.5T in 10 years
WASHINGTON (AP) — The nonpartisan Congressional Budget Office said Thursday that President Donald Trump's budget plan won't curb the spiraling deficit as it claims.
Trump's budget, released in February and mostly ignored since, promises spending cuts and economic growth that would cut the deficit to $363 billion in 10 years. CBO said it would instead hit almost $1.1 trillion if all of the president's policies were followed.
All told, CBO said Trump's budget would produce deficits of $9.5 trillion over the coming decade instead of the $7.2 trillion promised by the White House.
CBO took a more cautious approach to estimating tax revenues and economic growth. It rejected Trump administration claims that last year's $2 trillion-plus tax cut measure will pay for itself by boosting the economy.
Either way, deficits are likely to go even higher. Congress has passed legislation — signed by Trump — that rejected many of the proposed spending cuts in Trump's budget.
CBO estimated that Trump's budget, if passed by Congress, would cut spending by $3.5 trillion over the coming decade.
Even though Republicans control both Congress and the White House, they've shown no signs of addressing the budget deficit this year.
"The CBO confirmed today that the Trump budget would make drastic cuts to programs that millions of Americans rely on, while the Republican tax breaks for millionaires and corporations send our deficit soaring," said top House Budget Committee Democrat John Yarmuth of Kentucky.
CBO provides budget estimates and analysis of legislation for Congress.