'Never Believe the CBO': Kudlow Doubts Forecasts on Trump Tax Cuts Increasing Debt
President Trump's top economic adviser, Larry Kudlow, pushed back Tuesday against the Congressional Budget Office's prediction that the Republican tax cuts will raise the national debt by $1 trillion over a decade.
"If current laws governing taxes and spending generally remained unchanged, the federal budget deficit would grow substantially over the next few years, with accumulating deficits driving debt held by the public to nearly 100 percent of GDP by 2028," the CBO wrote in its 10-year budget forecast.
On "Fox & Friends," Kudlow had a simple message: "Never believe the CBO."
"They’re always wrong, especially with regards to tax cuts, which they never score properly because they don’t understand the growth, the incentives and the encouragements to reward success," said the director of the National Economic Council, who replaced Gary Cohn last month.
He pointed out that the CBO forecasts a two-percent growth in the economy over ten years, while the White House Office of Management and Budget predicts three percent.
"The differential over ten years on deficits is -- get this -- three-and-a-half trillion dollars in lower deficits," Kudlow said. "We’re already moving towards a three-percent growth path. I believe we will stay on that path and maybe even better."
He said this is not an attack on the CBO, but its track record on tax cuts is "not good."
Kudlow said the tax cuts will lead to economic growth and will benefit Americans across the income spectrum.
"A rising tide lifts all boats. We are starting to see an economic boom, an economic boom that will probably be the best in a couple of decades," he said. "Every single working American, really, 155 million working Americans are going to benefit from better business, stronger growth and lower taxes."
Kudlow said President Trump is also keen on moving toward a "simplification" plan so that Americans can file their taxes without as many forms.