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President Trump's Budget Includes a $2 Trillion Math Error (time.com)
An anonymous reader quotes a report from TIME: President Trump's budget includes a simple accounting error that adds up to a $2 trillion oversight. Under the proposed budget released Tuesday, the Trump Administration's proposed tax cuts would boost economic growth enough to pay for $1.3 trillion in spending by 2027. But the tax cuts are also supposed to be revenue-neutral, meaning that trillion dollars is already supposed to pay for the money lost from the tax cuts. Former Treasury Secretary Lawrence Summers called the oversight an "elementary double count" and "a logical error of the kind that would justify failing a student in an introductory economics course" in an op-ed in the Washington Post.
Hanlon's Razor applies here. Never attribute to malice that which is adequately explained by stupidity.
- None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
You guys are so picky, c'mon. Math is hard.
You are welcome on my lawn.
this is the president you deserve though
Partially disagree. It's malicious but that doesn't mean Trump isn't stupid too.
Hanlon's Razor applies here. Never attribute to malice that which is adequately explained by stupidity.
Gray's Law also applies [1].
"Any sufficiently advanced incompetence is indistinguishable from malice."
At some point the buck stops, and incomp etence is no excuse. Do you not think the buck stops with the POTUS? It doesn't matter if it's on purpose or a mistake - trillions of dollars of error should result in some firings.
[1] http://joshuabrauer.com/2007/0...
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The Trump administration has done nothing counter to Constitution.
That remains to be seen. There's this thing in the Constitution called the Emoluments clause that restricts members of the government from receiving gifts, emoluments, offices or titles from foreign states without the consent of the United States Congress. Trump maintains, through at least his family members and a paper-thin revocable trust, a LOT of property interests (hotels, resorts, golf courses, vacation homes) that rich foreigners can dump money into in return for a little kind attention from Herr Donald.
He still hasn't released his tax returns either (is he still being audited, not that that means anything), which might show substantial financial obligations to foreign stake-holders (there's a lot of borrowing that goes on in the real-estate business).
Then there's this little matter of involvement of a foreign power in the matter of an election, and obstruction of justice for trying to cover up any link to that foreign power.
Take it easy, Charlie, I've got an Angle...
... when a democrat is in the white house. Don't act surprised!!!
TRUMP: We're gonna have the biggest math errors! Way better and bigger errors than the democrats!! Nobody makes math errors better than me, believe me. No one's every had more than a trillion dollar math error. They said it couldn't be done. I'm really smart - I went to the Wharton School of Finance. We're gonna have errors more than, more, er, than TWO TRILLION DOLLARS!
Can't you people leave him alone for a single day? He finished up his orb business, then left the middle east to arrive at Israel, had a great time at the Holocaust museum and randomly decided to confess to outing an Israeli spy in front of Netanyahu - but all you people can do is make fun of his tiny, tiny hands.
You're treating a symptom while the disease rages on. The fish rots from the head. Why not cut off the head?
You're right, math is hard. But way too many people who call themselves conservatives round-off whatever errors they get by claiming the economy will magically, dramatically, improve and wipe out their mistakes. According to TFA:
According to the Committee for a Responsible Federal Budget, for Trump's tax cuts to pay for themselves, the economy would have to grow at 4.5 percent over the next 10 years. That's two and a half times the growth rate projected by the Congressional Budget Office.
That's always what these idiots do. Release the mythical tax strangle-hold on America's super-rich, and all the cuts to the safety net and spending for the military will magically be paid off, because the newly freed super-rich will invest their wealth and the whole country will soar like a pig full of hot air.
Conservatives who don't think very hard fall for this sucker-play because, to them, it's never been done, and it's waiting to happen, just begging to happen, and when it happens, it'll just totally work, and it'll be so great. Of course, nobody's holding a gun to the heads of rich people to do right with their tax relief and create jobs jobs jobs in America... they could spend it all overseas (a little more bang for the buck, there), spend it on yachts, spend it on cocaine... there's a lot of ways money can get spent... or not spent at all. Sunny-days, trickle-down budgets work just as well as Daddy's plan to move you into a nice house as soon as he wins his money back at the racetrack.
It's not a math error. It's a scam.
Take it easy, Charlie, I've got an Angle...
No, when "republicans/conservatives/righties" get caught cheating on their wives, get outed as gay, or it comes out they are drug addicts they look like hypocritical douche bags.
When "democrats/liberals/lefties" get caught being racist, sexist, homophobic, name callers they look like hypocritical douche bags.
Anytime anyone gets caught blatantly behaving in the opposite manner that they profess to be their "core values", they look like a lying ass. It doesn't matter if they are left, right or center.
I'm aware of how the Laffer curve works, but most reputable economic studies show the top of the curve is at around a 60% top marginal tax rate. Anything lower than that and you are losing revenue. In any case, I am just going by what the budget itself claims. It counts the same two trillion twice, read the articles, it's a basic math error.
- None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
Not to mention that Laffer himself repeatedly stated that exploiting the curve to grow revenue is ONLY possible if it's coupled with austerity measures. You can't just cut taxes, you HAVE to cut spending enough to offset it until the growth comes.
The idea is that, at around 60% you could grow revenues over-all by instituting a combination of spending cuts and tax cuts. No republican ever does the spending cuts part - because it's impossible to do the cuts Laffer describes without HUGELY cutting the military budget. Even if you flat out remove EVERYTHING ELSE from the budget it wouldn't be enough without also cutting defense.
Then comes the other factors - generally spending cuts INCREASE deficits and debts because they cost more revenue than they save in expenses (austerity in general is about as sensible as trying to save money on your heating bill by burning your paycheck for warmth). The only time austerity measures can safely be introduced is EXACTLY the opposite of when conservatives tend to push them: during boom times. Cutting spending in a recession is a great way to make the recession worse and the government poorer. You cut spending, if it needs cutting, during boom times when there is enough revenue that you can afford to carry the losses it cause.
So to successfully use the Laffer curve three conditions MUST hold:
1) Marginal tax rates needs to be at the peak of the curve, that's around 60% usually.
2) Spending cuts must match every tax cut
3) It must be during an already-in-progress boom cycle when there's lots of economic growth already happening and you can afford to take a medium term, but severe, shock to the system.
Even then you're likely to trigger a short to medium term recession - you may come out ahead at the end, but make no mistake - getting there is going to be painful. To get the promised holy land you will need to walk barefoot through a field of broken glass.
Republicans however, they don't much care for these facts. They just like to pretend that Laffer said "Tax cuts lead to economic growth which raises revenue" and ignore everything else he said and everything every other economist said so they can keep doing the exact same set of policies they always do - even though they NEVER work, and in fact, consistently produce exactly the outcomes that economists predict: deficits get worse, debts increase, the economy slumps and people suffer.
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