Larry Kudlow Masters the Debate: GOP's Tax Plan Aces Deficit Reduction
Kudlow Demonstrates CBO Miscalculations on Trump's 2017 Tax Plan by Billions
Host Larry Kudlow shines the spotlight on the GOP's tax cut bill, predicting it will be a game-changer for deficit reduction on his FOX Business show, 'Kudlow.'
According to the Congressional Budget Office (CBO), President Donald Trump's latest proposal would slash taxes by a whopping $3.7 trillion, yet hike deficits by $2.4 trillion over a decade. But what's the real deal?
Kudlow pushes back, claiming the CBO missed the mark with their projections regarding the 2017 Tax Cut and Jobs Act, one of Trump's most significant victories in his first term.
"Here's the deal: the actual cost of the 2017 tax cuts should have been zero," Kudlow stated on Thursday's show. "Why the big goose egg, you ask? Well, the tax cuts generated an extra $2.3 trillion in revenues over the past seven years, more than the CBO predicted!"
The White House is set to push ahead with the bill, but not everyone's on board. Skeptics like senators Rand Paul and Ron Johnson argue the bill falls short when it comes to deficit reduction.
Determined to get the bill passed with a simple majority vote, Republicans risk losing no more than two senators or the bill's chances go up in smoke. But Kudlow is confident, reminding viewers that the GOP will skillfully prevent a $4 trillion tax hike, a disaster for the economy.
But it's not just about tax cuts. Kudlow digs deeper, questioning the accuracy of the CBO's projections altogether. Case in point: the Affordable Care Act (Obamacare). The CBO initially estimated a whopping 25 million people would sign up for healthcare on the exchanges by 2017. The actual figure, however, was only 12 million, a significant 13 million-person miss.
The same goes for the 2022 Inflation Reduction Act. The CBO initially predicted billions in deficit reduction, but the latest estimates suggest it could add a staggering $428 billion to the deficit. The CBO based these projections on the assumption that the more significant tax cuts in the 2017 package would expire in 2025.
So, should we trust the CBO? Well, is the sky blue? While Kudlow's picking up steam, not everyone's on his side. Critics argue that the CBO adequately accounts for dynamic scoring, which considers the broader economic effects of tax cuts[4].
Regardless, Kudlow's having the last laugh, pointing out that the GOP is ready to pull off a deficit reduction miracle with their tax proposal. The question remains: will they succeed, or will the naysayers stand victorious?
[4] Note: The debate around the accuracy of CBO projections is ongoing, with supporters arguing that the CBO adequately considers dynamic scoring, and critics contending that the CBO underestimates the economic benefits of tax cuts.
- In his FOX Business show 'Kudlow', Larry Kudlow argues that the actual cost of the 2017 tax cuts should have been zero, claiming they generated an extra $2.3 trillion in revenues over the past seven years.
- Senator Rand Paul and Ron Johnson argue that President Trump's tax cut bill falls short when it comes to deficit reduction, despite the GOP's claims of significant deficit reduction.
- Kudlow questions the accuracy of the Congressional Budget Office's (CBO) projections, citing examples such as the Affordable Care Act and the 2022 Inflflation Reduction Act, where the CBO's predictions were significantly off from the actual outcomes.
- The debate around the accuracy of the CBO's projections is ongoing, with supporters arguing that the CBO adequately considers dynamic scoring, and critics contending that the CBO underestimates the economic benefits of tax cuts.
- Despite skepticism, Larry Kudlow remains confident that the GOP will skillfully prevent a $4 trillion tax hike, a disaster for the economy, with their tax proposal.
