Larry Kudlow: US has multi-trillion deficits over the next decade
Kudlow: It’s time to develop a balanced budget plan
FOX Business host reflects on the CBO report and explains the need for a balanced budget.
So, even the CBO (Congressional Budget Office)—no friend of supply-sliders — acknowledges that the Donald Trump corporate tax cuts worked.
CBO notes that any improvement to Medicare's fiscal situation is the result of higher payroll taxes following passage of TCJA and in fact, the latest CBO report incorporated the huge surge in tax revenue, accounting for $800 billion or nearly half of the $1.8 trillion dollar improvement in the FY '22 budget deficit. The rest of it comes from expiring COVID emergency spending.
You can bet that those Trump tax cuts contributed a big chunk to that revenue pick-up, and what limited overall prosperity we have today.
The CBO, by the way, also tip their hat to two other supply-side criticisms of Bidenomics. One is that all the government checks from the March 2021 so-called emergency spending plan boosted demand and contributed to the high rates of inflation. Plus, those very same government checks, according to the CBO, "might also have slowed the recovery of labor force participation in 2021."
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