"This idea that [Trump's plan] can be paid for even mostly by growth doesn't equate with any economic analysis or theory. [It's] fantasy math," said Marc Goldwein, senior policy director of the Committee for a Responsible Federal Budget.
Putting a finer point on it, "if they want to assume 3% to 4% growth, the plan may pay for itself on paper. But it won't pay for itself in reality," Goldwein said.
The Committee for a Responsible Federal Budget (CRFB) added Friday in a release, “Not paying for tax reform is extremely misguided, would explode the federal deficit and end up harming long-term economic growth prospects.”
Maya MacGuineas with the bipartisan Committee for a Responsible Federal Budget said she thinks Republicans so badly want to avoid a shutdown on their watch that neither Trump nor the House Freedom Caucus will take a stand that risks one — especially after they failed to repeal Obamacare just a few weeks ago.
“Anybody could cause enough problems to create a shutdown,” she said, “and the chances of hurting them are high enough that cooler heads will prevail.”
Committee for a Responsible Federal Budget President Maya MacGuineas discusses how tax reform can help grow the economy on Cavuto: Coast to Coast.
“Tax cuts don’t pay for things, tax increases pay for things,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget.
MacGuineas said taxes could be increased for some people at the same time rates are lowered by trimming some of the $1.6 trillion worth of deductions and credits built into the code. It is also possible to trim credits and deductions so that some of the money is used for lower rates and some for increased spending for infrastructure.
Congress and Trump could also just agree to do both: cut tax rates and spend money on infrastructure, and not worry about increasing the deficit. MacGuineas called this a “devil’s bargain” that would reduce or eliminate any economic growth from cutting taxes.
A proposal from four prominent conservatives to cut taxes for businesses and provide funding for infrastructure could cost $5.5 trillion, according to the Committee for a Responsible Federal Budget (CRFB).
"Not paying for tax reform is extremely misguided, would explode the federal deficit, and end up harming long-term economic growth prospects," CRFB, a nonpartisan budget watchdog, said in an analysis released Thursday.
With April 18 nearly here, U.S. taxpayers are likely asking themselves: Where exactly are my tax dollars going?
To answer the question, here is a “Taxpayer Receipt” showing how each $100 of taxes was spent, both for 2016 and five years earlier. It was prepared by the Committee for a Responsible Federal Budget (CRFB), a nonpartisan nonprofit group in Washington that monitors federal spending.
The current discussions over 2017 spending are in that sense looking in the rear-view mirror, when “we should be focusing on 2018”, said Maya MacGuineas of the Committee for a Responsible Federal Budget.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, agreed that the spending side of the equation is the most important lever for solving deficits.
But she said it’s important for Republicans not dig the hole any deeper by trying to use tax reform to eke out tax cuts.
“I think their commitment that tax reform be revenue-neutral is incredibly important,” she said. “And if that transforms into big tax cuts that lose hundreds of billions or even trillions of dollars, that is going to explode the debt even more and make getting it under control close to impossible in any shorter amount of time.”
As the tax talks heat up, expect deficit hawks like the Committee for a Responsible Federal Budget and several Republican lawmakers from the far-right Freedom Caucus to make noise about this big-picture question of whether a tax package should add to the deficit. The fiscal hawks in the House, elected specifically to cut government spending, will want Trump to pay attention to the deficit as part of any tax overhaul — just as they did with the health care bill.
From his campaign days, Trump had promised to improve the healthcare facilities for veterans. According to the Committee for a Responsible Federal Budget, the Choice program cost up to $500 billion over 10 years. Critics are viewing this program as partial privatization that could end up weakening the VA entirely, according to Time.
Trump's team is considering a controversial plan that could make his promise to cut taxes harder to keep
Most of the claimants that benefit from the SALT deduction live in traditionally Democratic states, primarily California and New York. Those two states receive around 30.5% of the total benefits from the deduction, according to the Committee for a Responsible Federal Budget.
David Stockman served in President Ronald Reagan’s White House as the Director for the Office of Management and Budget. He is also a two term Congressman and serves on the Board of Directors for the Committee for a Responsible Federal Budget. His latest book, Trumped! Explores exactly what he believes President Trump must do in order to redirect the economy.
The Committee for a Responsible Federal Budget broke down exactly what federal taxes pay for in a post, breaking out federal government spending like a receipt for a $100 check.
In a separate report, the Committee for a Responsible Federal Budget also examined FY 2016 and developed a Taxpayer Receipt which gives a detailed breakdown of where U.S. taxpayer dollars went.
"In 2016, nearly half of all tax dollars collected went toward Social Security and health programs like Medicare and Medicaid," it said.
The largest beneficiaries of the tax break are California, New York and New Jersey, all relatively high-tax blue states, which eat up more than a third of the nationwide benefits, according to the nonpartisan Committee for a Responsible Federal Budget.
“Tax cuts are easy, tax reform is hard,” says Maya MacGuineas, president of the Committee for a Responsible Federal Budget, a bipartisan and nonprofit organization that studies the impact of fiscal policy.
Even with the national debt now marching its way to $20tn (a credit card debt of more than $61,000 for every US citizen) MacGuineas said she saw little sign that politicians were making the tough choices needed to pass true tax reform.
“We are in a period of giveaways and politicians are reluctant to talk about hard choices,” she said.
Senior VP of the Committee for a Responsible Federal Budget weighs in on America's News HQ.
Our guest this week is the Maya MacGuineas, She is the president of the Committee for a Responsible Federal Budget and the head of the Campaign to Fix the Debt. We talked with her about the differences between the $20 trillion debt and the year-to-year deficit and why failing to raise the debt ceiling could be catastrophic for the U.S. and global economies.
But the nonpartisan Committee for a Responsible Budget, which opposes big budget deficits, believes Trump's legislative strategy is based on a misconception. The last version of the American Health Care Act created only about $150 billion in real savings over 10 years, not $900 billion, according to the group. What's more, the law requires that any savings must go toward deficit reduction, not tax cuts.
Deciding to continue the subsidies for now also gives the administration more legislative options, according to Ed Lorenzen of the Committee for a Responsible Federal Budget. Legislation that explicitly authorizes spending for the subsidies "is simply reiterating what the [CBO] baseline already assumes and has no cost," Lorenzen said. But if HHS stops the payments or the White House drops its appeal, new legislation to resume the payments would need additional offsets or to be specially accommodated by the appropriations committee.
“Social Security’s long-term imbalance represents one of our most serious fiscal challenges and one that most lawmakers are all too willing to ignore,” the Committee for a Responsible Federal Budget, a prominent anti-deficit research group, wrote in a new analysis.
“It seems unlikely there will be cuts at the magnitude he proposed,” said Ed Lorenzen, a senior adviser at the nonpartisan Committee for a Responsible Federal Budget who’s a former Capitol Hill staffer for two House Democrats.
President Donald Trump is re-iterating his stance that the Affordable Care Act must be repealed before Republicans overhaul the tax system. Trump said there is up to $900 billion in savings from health changes that could be used for tax reform. But the Committee for a Responsible Federal Budget (CFRB) says failure to pass the American Health Care Act could make tax reform easier.
Trump administration lifts hiring freeze but asks agencies to make deep personnel cuts to 'drain the swamp'
Ed Lorenzen, Senior Advisor at the Washington DC non-profit Committee for a Responsible Federal Budget, told The Independent that he think Mr Mulvaney made the announcement about the hiring freeze being lifted because it has caused problems in programs and activities the administration considers important "such as processing Veterans Administration disability claims.”
Moreover, the Committee for a Responsible Federal Budget, a non-partisan group advocating for responsible government spending and debt reduction, predicts that the federal budget could increase by $5.3 trillion in the next decade, raising the deficit by as much as 25%.
The federal debt, about to surpass $20 trillion, could rise as high as 225 percent of gross domestic product over the next three decades, per the nonpartisan Committee for a Responsible Federal Budget. The debt has doubled in only 10 years and America is facing $100 trillion in unfunded liabilities. This only spells higher taxes for Americans coupled with dramatic cuts to entitlements and government services. Every dollar spent and borrowed by the government ultimately comes from the pockets of its citizens.
Not all projections are rosy. The non-partisan Committee for a Responsible Federal Budget analyzed Sanders’ plan for universal health coverage in 2016, and found it would add $19tn to the federal debt.
According to this report by Time earlier this year, four well-known, partisan and non-partisan tax research organizations (The Tax Foundation, Tax Policy Center, Moody’s Analytics, and the Committee for a Responsible Federal Budget) concluded that the tax plan proposed by the president and mostly endorsed by the Republican leadership would fail to pay for itself.
But some experts were not so confident the rest of the Senate would go along with what the appropriations committee wants, suggesting another delay in passing the budget. “Congress would have to act quickly, it would have to be forced through and rank-and-file members wouldn’t have much of a chance to review or change it,” said Ed Lorenzen, senior adviser for the Committee for a Responsible Federal Budget. “So they may prefer to kick the can down the road with a CR instead.”