Budget plan has ‘egregious’ accounting error

[GennGreymane]

http://thehill.com/policy/finance/33...counting-error

Former Treasury Secretary Larry Summer on Tuesday said that President Trump’s budget relies on an “egregious” accounting error to make its numbers add up.

In a Washington Post op-ed, Summers noted that the budget seems to double-count the economic benefits from tax reform.

Though GOP plans for tax reform are still far from complete, the budget assumed the reform would be revenue-neutral. Proponents of the reform have said that the economic benefits from cutting taxes would boost the economy, which would be a key element of keeping the reform neutral.

But the budget also assumes high levels of economic growth outside the framework of the tax reform and counts the revenue benefits toward its totals.
“This is a mistake no serious business person would make. It appears to be the most egregious accounting error in a presidential budget in the nearly 40 years I have been tracking them,” Summer wrote.

The budget estimates that the effects of economic feedback would add up to over $2 trillion over the course of a decade.

"How could the secretary of the Treasury, the director of OMB and the director of the National Economic Council allow such an elementary error?" Summers asked.

Treasury Secretary Steve Mnuchin said the claims were off base because the tax reform is still in flux.

"We felt it was premature to put any changes in the budget from taxes since we're not far enough along to estimate what that plan will be,” Mnuchin said at the Peterson Foundation Fiscal Summit.

Far from assuring the tax reform would be revenue neutral, however, he offered only assurances that the plan would not cost $4 trillion to $5 trillion, as some economists have estimated.

Finally. Someone he can fire without it being an ethical issue. Who ever made the budget.

[Edge-]

Are they trying to say that Trump didn't hire "the best" people?

Poppycock!

[cubby]

What do they expect when they hire literally the most unqualified Cabinet in history.

(is there any way to get the stupid side and top ads from stop popping up in MMO? they are killing me)

[Lenonis]

I'm skeptical that this is an actual error.

Conservative budgets have always been built on really flimsy math that never works out in reality.

[Kujako]

They just don't understand the effects of the 5% GDP growth Trump said he'll usher in.

[Edge-]

They just don't understand the effects of the 5% GDP growth Trump said he'll usher in.

They've revised those unreasonable extremely expectations down to the slightly less unreasonable expectation of 3% GDP growth every year for the next 10 years.

Progress!

[Mayhem]

These are the people who want to promote "lasting peach." I'll reserve my shocked face for Trump's re-election in 2020.

They're promoting never ending peach flavoured iced tea? I'm in!

[Mayhem]

Mmmm, lasting peach.

I had no idea that the israel palestinian conflict is keeping us from having lasting peach!

[Deletedaccount1]

The plan is basically just shifting money around between departments and cutting the federal government's source of income. They need sharp austerity in the budget if they want tax cuts to work but that is the politically unpopular move.

[Skroe]

The plan is basically just shifting money around between departments and cutting the federal government's source of income. They need sharp austerity in the budget if they want tax cuts to work but that is the politically unpopular move.

Austerity doesn't work. Europe's non-recovery from the recession proved that. We have empirical evidence. There is no debate.

There are plenty of perfectly valid and conservative grounds to reduce the size of government and shift the management of services to states. Austerity isn't one of them. It was a work of fiction that came up as a bullshit, non-intellectual answer to Keynesian economic stimulus during the recession.

Austerity isn't conservative. It's a lie that was promulgated by people who DO KNOW BETTER that needs to be taken out back and shot through the skull, and then buried beneath an outhouse.

[Heladys]

Mmmm, lasting peach.

Give him credit, if Trump knows how to make an infinite peach, that'll be a positive thing for his presidency.

[Deletedaccount1]

Austerity doesn't work. Europe's non-recovery from the recession proved that. We have empirical evidence. There is no debate.

There are plenty of perfectly valid and conservative grounds to reduce the size of government and shift the management of services to states. Austerity isn't one of them. It was a work of fiction that came up as a bullshit, non-intellectual answer to Keynesian economic stimulus during the recession.

Austerity isn't conservative. It's a lie that was promulgated by people who DO KNOW BETTER that needs to be taken out back and shot through the skull, and then buried beneath an outhouse.

Obviously the debate isn't settled when many economists still hold that view. Caplan, Mankiw and Sowell to name a few. I don't see how anything other than austerity is viable.

Pushing for reforms like school choice or social security privatization are too politically unpopular and the market is immediately to blame if anything goes wrong. If you push for spending cuts or means testing, it at least automatically expands the role of the market and requires people to start saving.

[Draco-Onis]

I'm skeptical that this is an actual error.

Conservative budgets have always been built on really flimsy math that never works out in reality.

It's not an error they are assuming 3% GDP growth and relying on dynamic scoring (fake math) to justify their numbers. That entire budget is smoke and mirror, it's not even based on math from the real world.

[Xarkan]

Give him credit, if Trump knows how to make an infinite peach, that'll be a positive thing for his presidency.

That would depend on why it would last.. if it lasts because no man insect or bacteria will touch it i would not call it a win

[Shadowferal]

The plan is basically just shifting money around between departments and cutting the federal government's source of income. They need sharp austerity in the budget if they want tax cuts to work but that is the politically unpopular move.

You mean fuck the poor for the sake of the wealthy...

[cubby]

I'm skeptical that this is an actual error.

Conservative budgets have always been built on really flimsy math that never works out in reality.

I'm not sure what you're saying here - that this particular concern isn't an error, or that most/all of previous budgets have been based on such unreal numbers that this one is nothing new.

Or a third choice.

[Blur4stuff]

It plays into the narrative republicans have always wanted to push. If you're poor it's your own fault so suffer the consequences. All while pretending to be followers of Jesus who taught the exact opposite.

[Draco-Onis]

It plays into the narrative republicans have always wanted to push. If you're poor it's your own fault so suffer the consequences. All while pretending to be followers of Jesus who taught the exact opposite.

According to the administration they aren't screwing the poor, disabled and children but "encouraging" them to magically get better jobs.

[Lenonis]

Austerity doesn't work. Europe's non-recovery from the recession proved that. We have empirical evidence. There is no debate.

You are dealing with a group of people who still think trickle down is a valid economic model. Empirical evidence is not going to work.

[Rukh]

Mmmm, lasting peach.

God, I never read that piece of garbage.

They're going to get the Palestinians to agree to peace because of a recognition of a threat from Iran. Um. Do they have Barron writing their diplomacy policy? Don't they remember the primary threat from Iran is arming terrorists to HELP PALESTINE? Jesus christ.