If you found yourself pouring over the just unveiled details of the White House budget plan while wracked with confusion, you’re not alone.
Apparently, the budget proposal assumes that the tax cuts already proposed by the Trump Administration will buoy the economy enough to provide for the budget to become balanced over the next decade.
There’s a problem here, though, and it’s one that a number of observers have already pointed out. Quite simply, the tax cuts were also supposed to pay for themselves, in a manner of speaking, with economic growth going to apparently experience such a jumpstart that the revenue lost by the massive tax cuts for the wealthy would be offset by the growth.
Economists far and wide have denounced the specifics of those proposals as utterly ludicrous, but that’s not what the acute issue is here. Rather, the acute issue here is that the same trillions of dollars that the Trump Administration claims will be generated by tax cuts to the point of paying for the tax cuts are claimed by the Trump Administration to be behind their plan to magically balance the budget over the next ten years by taking a sledgehammer to social programs.
When confronted about this issue, Treasury Secretary Steven Mnuchin dismissed concerns, saying, “This is a preliminary document that will be refined.”