easyt65
Diamond Member
- Aug 4, 2015
- 90,307
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"Earlier this week, the Congressional Budget Office released their Budget and Economic Outlook report for 2019 to 2029.
While media reports focused on the $3 billion that CBO estimates was permanently lost by the partial government shutdown (equal to 0.02 percent of projected annual GDP in 2019), the real story should be that the tax cuts (TCJA) and other economic policies of the Trump administration have been successful. For American families this means more jobs, higher wages and increased take-home pay.
Stronger economic growth will also improve the nation's fiscal health. CBO has found that 0.1 percent in revenue equals 1.4 percent in GDP growth and over $400 billion in revenue over a decade, and in the past they have stated Opens a New Window. that 0.1 percent in GDP equals $300 billion. This means that economic growth of 2.5 percent instead of the 1.7 percent predicted by CBO will net the federal government trillions of dollars in higher revenues over 10 years.
Regardless of what may happen in the future, the CBO report confirms that the economy today is strong.
Real disposable income is expected to grow by 2.9 percent in 2018 while consumer spending is expected to grow by 2.7 percent.
Growth of Real Business Fixed Investment (measured as purchases of equipment, structures and IP) increased by 14.9 percent in 2017 and is projected to increase by 9.6 percent in 2018.
Each of these numbers mark a sharp contrast with the economic policies of the Obama administration, which saw average annual GDP growth of 1.9 percent compared to the 3.1 percent seen in 2018.
This positive economic news should not be a surprise."
Economy strong thanks to Trump tax cuts, CBO report shows
While media reports focused on the $3 billion that CBO estimates was permanently lost by the partial government shutdown (equal to 0.02 percent of projected annual GDP in 2019), the real story should be that the tax cuts (TCJA) and other economic policies of the Trump administration have been successful. For American families this means more jobs, higher wages and increased take-home pay.
Stronger economic growth will also improve the nation's fiscal health. CBO has found that 0.1 percent in revenue equals 1.4 percent in GDP growth and over $400 billion in revenue over a decade, and in the past they have stated Opens a New Window. that 0.1 percent in GDP equals $300 billion. This means that economic growth of 2.5 percent instead of the 1.7 percent predicted by CBO will net the federal government trillions of dollars in higher revenues over 10 years.
Regardless of what may happen in the future, the CBO report confirms that the economy today is strong.
Real disposable income is expected to grow by 2.9 percent in 2018 while consumer spending is expected to grow by 2.7 percent.
Growth of Real Business Fixed Investment (measured as purchases of equipment, structures and IP) increased by 14.9 percent in 2017 and is projected to increase by 9.6 percent in 2018.
Each of these numbers mark a sharp contrast with the economic policies of the Obama administration, which saw average annual GDP growth of 1.9 percent compared to the 3.1 percent seen in 2018.
This positive economic news should not be a surprise."
Economy strong thanks to Trump tax cuts, CBO report shows