Deficit Soars By 17% After Trump Tax Law
October 16, 2018
The federal deficit swelled by nearly 17 percent largely because of a sharp decline in corporate tax revenues after the Trump tax law. Trump said his tax law would pay for itself, and he claimed he would quickly eliminate the national debt and balance the budget. We now know those were all lies.
LIE: The Trump administration claimed the tax law would “pay for itself” and even suggested it already has.
Secretary Mnuchin: “‘This will be the most significant change to the tax code since Reagan,’ he said, adding that the plan ‘will pay for itself’ by boosting economic growth.”
Larry Kudlow: “Even the CBO numbers- even the CBO numbers show now that the entire one and a half trillion dollar tax cut is virtually paid for by higher revenues and better nominal GDP.”
Kevin Hassett: “And so I think that the notion that the corporate tax side has about paid for itself is clearly in the data.”
LIE: Trump suggested he could balance the budget within five years.
Trump: “There are so many things that we can cut and we can balance the budget very quickly.”
Hannity: “You think in five years?”
Trump: “I think over a five-year period. Maybe I could even surprise you. But I mean make the country better. I’m not saying skimp. I’m saying making the country better.”
LIE: Trump claimed he would quickly eliminate the national debt.
Washington Post: “He insisted that he would be able to get rid of the nation’s more than $19 trillion national debt ‘over a period of eight years.’ Most economists would consider this impossible because it could require taking more than $2 trillion a year out of the annual $4 trillion budget to pay off holders of the debt.”
Trump: “So we’ll start knocking out that debt, knocking it out fast and having a balanced budget. … In two or three or four years you’ll be looking and saying, wow, that’s been pared down.”
Trump: “I know how to get rid of debt. I would get rid of that debt and I would do it quickly, because it’s sitting out there, and it is a time bomb for this country.”