Trump has released his newest tax plan, and it has one singular issue that most people, even Republicans can’t truly look past. It doesn’t add up.
I mean that literally, the math doesn’t work.
Firstly it bases much of its assumed debt losses on tax cuts, and cuts to Medicaid, medicare and Social Security, especially Disability Insurance. Secondly, it relies on the idea that due tot he sudden decrease in costs to the federal government, the GDP will grow upwards over the next four years, starting at 2.1% this year and rising to 3.0% by 2021. The tax plan does not explain why there would be a sudden increase in GDP, it does not allocate any resources into economic stimulus, simply cuts resources and taxes and seems to expect that to improve things according to Mulvaney.
This also contradicts the Congressional Budget Office, which claims that the GDP will only grow 1.8% this year. It’s middling, but more realistic, as there’s certainly no reason to believe this particular plan, even with the Trump bump in the Stock Exchange, will increase the GDP by any significant amount.
Oh, and they double counted the growth rate. The White House is predicting that the cuts they are presenting will not only lower the deficit they will raise revenue. Somehow.
This is the kinda stuff you fail maths class for.
The Atlantic: The Unworkable Math of Trumps Budget