CBO credits tax cuts for more job growth over the coming decade, but will add nearly $2 trillion to deficit
The Congressional Budget Office (CBO) gave more good news that resulted from the Tax Cuts and Jobs Act that the Trump Administration and Congress passed last December: the CBO projects there will be 156.8 million jobs by the end of 2027, which is 2.6 million more jobs than it projected in its June 2017 Budget and Economic Outlook.
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Additionally, CBO credits the average of 1.1 million additional jobs over the next 10 years to the Tax Cuts and Jobs Act.
Since the GOP-Trump tax plan didn’t include any reductions in spending, it is also no surprise that the CBO also projected nearly $2 trillion in deficits.
Tax Foundation notes that “The report projects that the TCJA, the Bipartisan Budget Act of 2018, and the Consolidated Appropriations Act will exert upward pressure on interest rates and prices. My colleague Steve Entin discusses the new tax law’s interactions with the interest rate and deficit here, noting that ‘rising interest rates stemming directly from the growth provisions of the tax reform bill would be a positive sign that the tax cut is working to encourage capital formation, and should not be cause for alarm.'”
That was the headline on left-leaning sites, like American Progress, attacking the GOP leadership: “The broken tax bill promise, coupled with the threat that President Donald Trump and his allies will seek to address the budget hole with cuts to programs such as Social Security, Medicare, and Medicaid, should be of great concern to the American public.”
