White House Underestimated New Debt in Trump Budget by $2.3 Trillion: CBO

(From The Washington Examiner)

President Trump’s proposed budget would add $2.3 trillion more to deficits over the next decade than the White House estimated, the Congressional Budget Office said Thursday.

CBO, Congress’ agency for producing budget analyses, said Trump’s fiscal year 2019 budget would add $9.5 trillion to total deficits over the decade, not the $7.2 trillion the White House projected. The difference is mostly attributable to the CBO’s estimate of slower economic growth. Less growth means smaller tax collections and thus higher deficits.

Thursday’s analysis applied to the budget proposal that the White House submitted in February.

The CBO thinks that the early years of the Trump budget would actually see lower deficits than the White House thought. But in later years, deficits would eventually grow to double what the White House thought, as revenues come in short of their expectations.

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