CBO on Tax Cuts
Never believe the CBO. Very important: Never believe them," Larry Kudlow, the new head of the White House National Economic Council, said during an interview on "Fox & Friends" on Tuesday. "They're always wrong, especially with regard to tax cuts, which they never score properly."
CBO estimates that, over the 10 years from 2019 to 2028, the Trump budget request would cut the deficit by $2.9 trillion compared to the current baseline. The White House estimated that the deficit reduction over that time would total $5.2 trillion.
That's the 4-D chess Trump game.
A credible impartial source says the budget will cut the deficit by $2.9 trillion. (Note: this is nearly always a way of saying giant tax hikes are coming because cutting spending and giant tax hikes are the only ways to reduce the deficit and it's never the former.)
Cutting the deficit is a "good message" though and Trump wants it spread. If he says $2.9 trillion cut, the story will be ignored, or will be analyzed to point out it means a tax hike.
So instead he says, "CBO are lying scum, deficit cut is $5.2 trillion."
Then the stories become 100% "Deficit cut will only be $2.9 trillion", "Trump lying AGAIN?!", and "CBO are not lying scum" instead of the bad story "$2.9 trillion is actually a tax hike." So Trump has tricked the media into reporting on the story that he wants - that $2.9 trillion will be cut.