Trump Tax Cuts Boosting Growth Big League

Trump tax cuts
U.S. President Donald Trump gestures during a Public Safety Medal of Valor awards ceremony in the East Room of the White House in Washington, D.C., U.S. on Tuesday, Feb. 20, 2018. The Medal of Valor is the Nation's highest award for valor by public safety officers, and serves to recognize extraordinary acts above and beyond the call of duty. Photographer: Joshua Roberts/Bloomberg via Getty Images

Are Trump’s tax cuts working? While a full economic analysis of the tax cuts and their effects on all sectors of the American economy is something that may have to wait a decade, there is evidence that they’re boosting growth thus far.

How do we know? Because prior to the tax cuts, the Congressional Budget Office (CBO) published estimates for how they thought the American economy would perform in 2018. Those estimates projected 2% economic growth in 2018, but those numbers are now drastically higher.

According to Investors Business Daily:

When the Congressional Budget Office released its updated budget forecast, everyone focused on the deficit number. But buried in the report was the CBO’s tacit admission that it vastly overestimated the cost of the Trump tax cuts, because it didn’t account for the strong economic growth they would generate.

Last June, the CBO said GDP growth for 2018 would be just 2%. Now it figures growth will be 3.3% — a significant upward revision. It also boosted its forecast for 2019 from a meager 1.5% to a respectable 2.4%.

“Underlying economic conditions have improved in some unexpected ways since June,” the CBO says. Unexpected to the CBO, perhaps, but not to those of us who understood that Trump’s tax cuts and deregulatory efforts would boosts growth.

To give some context on just how important even a percentage point of economic growth is – an economy growing at 2% per year will double in size every 35 years, an economy growing at 3% per year will double every 23 and a half years.

It’s so-far-so-good on the economy, with the only exception being spending. For as much as liberals want to claim Trump’s tax cuts are going to blow up the debt, disastrous $1.3 trillion omnibus bills are doing much more to that effect.

Are you benefiting from the Trump tax cuts? Let us know in the comments section below!

By Matt

Matt is the co-founder of Unbiased America and a freelance writer specializing in economics and politics. He’s been published... More about Matt

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