Trump Tax Reform to Increase U.S. Deficit

Published Sep 27, 2017. By Dave Boyer.

Fiscal watchdogs said Wednesday that President Trump’s tax reform plan is likely to add trillions in deficits and relies on overly rosy projections of economic growth to minimize its budget impact.

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Robert Bixby, executive director of The Concord Coalition, said paying for the tax cuts is “the critical question.”

“Elected officials are touting all the goodies in terms of tax cuts and lower rates while leaving the tradeoffs hidden and which taxpayers would be affected unspecified,” Mr. Bixby said. “That’s hardly a model for legislative responsibility.”

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The Concord Coalition said Congress and the president “should not indulge in the rosy fiction that tax cuts pay for themselves through higher economic growth.”

“Doing so could dramatically increase the fiscal crunch in the years ahead,” the group said. “While deficit-financed tax cuts can sometimes be justified to help the economy through a recession, that is hardly the case today.”