White House Ups Its Deficit Projections for 2019 to Over 1 Trillion Dollars
No one should be surprised that the Trump Administration is now predicting a federal budget deficit north of a trillion dollars for 2019. President Trump and Congressional Republicans had argued that last year's tax cuts would stimulate greater economic growth and shrink the deficit. It hasn't worked out that way.
Democrats and most economists had warned that the tax reduction legislation would lead to more red ink and that its stimulative effect would be negligible because we were already experiencing a sustained economic expansion. And they were correct.
The administration's projections now acknowledge a rapidly growing deficit and a smaller impact on the overall economy than they had predicted.
The Hill: “This is a striking acknowledgement following almost two years of claims that economic growth unleashed by these policies will wipe deficits away,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget."
Its important to note that these deficit projections released by the White House on Friday are still based on "rosy" growth estimates that many economists find too optimistic, so expect future deficit forecasts to be even more bleak.
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