Recently, Trump’s Treasury Secretary Stephen Mnuchin claimed that the President’s “biggest tax cut in history” – little more than a massive giveaway to the ultra-wealthy to begin with – would “pay for itself.”
In a stunning bit of the math Republicans do to make themselves feel better, Mnuchin has apparently made a $2 trillion dollar mistake in the calculations upon which the White House’s budget is based.
In effect, the Trump Administration has decided that 2 – 2 = 4 and is trying to sell it to the American people. New York Magazine reports:
The budget assumes $2 trillion in higher revenue from growth in order to achieve balance after ten years. So the $2 trillion from higher growth is a double-count. It pays for the Trump cuts, and then it pays again for balancing the budget.
Or, alternatively, Trump could be assuming that his tax cuts will not only pay for themselves but generate $2 trillion in higher revenue. But Trump has not claimed his tax cuts will recoup more than 100 percent of their lost revenue, so it’s simply an embarrassing mistake.
Former Treasury Secretary Larry Summers called it “a logical error of the kind that would justify failing a student in an introductory economics course.”
It shouldn’t surprise anyone that Treasury Secretary Mnuchin push the second theory, that somehow cutting taxes to 1,200 super rich American families will magically result in more taxes.
Mnuchin made a $100,000,000 mistake on his financial disclosures to the Senate earlier this year. Compared to this new miscalculation, the former Goldman Sachs banker’s last mistake was merely a rounding error.
Shamefully, this Republican math is little different than the Bush tax cuts that created America’s oligarch class, nor different than Ronald Reagan’s tax cuts, which ultimately had to be rolled back.
But Republicans shamelessly persist on selling fake math to the American people, until the buck stops when adults from the Democratic Party and the media enter the room, with a basic education in economics.
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is the Executive Editor of Occupy Democrats and published author. His new Meet the Candidates 2020 book series is distributed by Simon and Schuster. He's also mortgage broker, community activist and radio personality in Miami, Florida., as well as the producer of the Dworkin Report podcast. Grant is also an occasional contributor to Raw Story, Alternet, and the DC Report, and an unpaid senior advisor to the Democratic Coalition and a Director of Sunshine Agenda Inc. a government transparency nonprofit organization.