Larry Kudlow, the Reagan administration economist who also advised the Trump campaign, said he’s worried that the House of Representatives isn’t estimating how fast the U.S. economy will grow if taxes are cut.
The lower growth forecast may mean lawmakers won’t approve some cuts, such as for corporate tax rate.
“I’m hearing, for example, they may not use a 3 percent growth baseline, which is worth several trillion dollars,” Kudlow said on financial news channel CNBC. “That they will use a joint tax committee baseline which means no dynamic scoring – will cost them a fortune. The only way they can get this done is a 3 percent growth path, the mother of pay-for’s.”