Why Trump Administration’s Economic Growth Forecast Is Dubious

From the Institute on Taxation and Economic Policy (http://www.itep.org/):

The nonpartisan Congressional Budget Office today is out with its forecast of economic growth over the next decade. As expected by economists across the political spectrum, CBO predicts the economy will grow at a rate of about 1.9 percent over the long-run. Normally, this report doesn’t receive a plethora of attention, but it is worth taking in this time because the Trump Administration has projected the economy will grow at a wildly optimistic 3 percent rate.

In a new report, ITEP analysts take a look at historical and current trends to explain why the administration’s projected growth is not likely to come to fruition. Read more

ITEP Research Director Carl Davis goes one step further, writing on the Just Taxes Blog, “By making the federal budget outlook appear more favorable than it is, the administration is seeking to bolster its case for enacting a multi-trillion-dollar tax cut.” Read more