Vox article on the budget
and (yet another) tweet storm that summarizes it.
For the tweeter averse I broke it down in bullet points:
- The fraud here goes beyond “rosy” forecasts. It even goes beyond “voodoo economics”–the debunked theory that tax cuts pay for themselves.
- The Trump team proposed a $5.5 trillion tax cut just four weeks ago AND COMPLETELY LEFT IT OUT OF THEIR BUDGET. 3/
- But wait – it’s actually worse than that. Not only is the $5.5 trillion cost of the tax cuts not included in the budget numbers… 4/
- But the Trump budget claims $2 trillion in ADDITIONAL revenue from economic growth RESULTING PRINCIPALLY FROM THOSE TAX CUTS. 5/
- So in other words, they are claiming that tax cuts WILL PAY FOR THEMSELVES—something no credible economist believes—AND THEN SOME. 6/
- My former colleague @GregLeiserson predicted this double-counting, here: http://equitablegrowth.org/tax-finance/will-the-trump-administration-double-count-its-magic-asterisk/ … 7/
- Bears repeating: Trump budget claims that the tax cuts, whose cost is est. by @BudgetHawks at $5.5T, will actually INCREASE rev. by $2T. 8/
- So this is not a $2 trillion “magic asterisk.” THIS IS A $7.5 TRILLION LIE. 9/
- It’s obvious why they’re hiding the cost of tax cuts. 10/
- Putting $5.5T in tax cuts for wealthy ppl & corps alongside ~$4T in cuts to progs serving low & middle-income people wld not be popular. 11/
- Nor would it be seen as fiscally responsible. 12/
- So they brazenly just disappeared the tax cuts, allowing them to claim that the program cuts are “tough choices” for deficit reduction. 13/
- These are savage cuts to Medicaid, to Social Security disability, to nutrition, to student aid, to people & communities left behind. 14/
- In sum, this is the Bernie Madoff Budget. A massive accounting fraud, designed to fleece vulnerable people. 15/15