Much of the mainstream media’s attention has been focused on the Congressional Budget Office’s report that the federal deficit would top $1 trillion by 2020, blaming Republican tax reform for it. Typical is this Reuters headline: “U.S. budget deficit to balloon on Republican tax cuts.”
But the MSM has largely overlooked or ignored a major point of revision within the CBO report. Last year, the CBO surmised that the Republican tax cuts would have little immediate impact on the nation’s economic growth and estimated 2018 GDP at just 2%. That estimate has now been revised up to 3.3% — not a small adjustment.
The CBO has also adjusted its 2019 estimates up to 2.4% from what was only 1.5% GDP growth.