This article was published by The McAlvany Intelligence Advisor on Wednesday, April 11, 2018:
All one needs to do is view the first page of the CBO’s 166-page report on its 10-year outlook for the U.S. economy and government spending that was released on Monday to see why: it features a graph that shows better than words just where we’re headed. Two lines diverge: one, showing government revenues; the other, government outlays. The gap, instead of narrowing, widens dramatically into the future. Unfortunately, the graph cuts off in 2028, leaving one wondering: what happens next?
The CBO report reflected the new law, happily called the Tax Cuts and Jobs Act, that was passed in December. Its previous projection, made by the CBO last June, showed a deficit of $563 billion for 2018, rising to $689 billion next year. Now, with the Tax Cuts and Jobs Act behind them, the CBO now projects this year’s deficit to be $804 billion and next year’s to be just a touch below a trillion dollars, at $981 billion.
The CBO, considered by many to be less partisan than projections coming from the White House’s Office of Management and Budget (OMB), covered itself with this disclaimer: