But if passed, what may this bunker buster do to the economy? While I have rarely met a tax cut I didn't like, this one just may be more likely to send the economy into a downward spiral than it is to send up to orbit.
As I mentioned in my January commentary, Donald Trump's big-spending, tax-cutting campaign rhetoric threatened to make him the biggest borrower in presidential history. He comes to office at a particularly vulnerable time for budget dynamics. After contracting by nearly two-thirds from 2010 to 2015 (from the mind-bending $1.3 trillion to the merely enormous $438 billion), the Federal deficit started expanding again in 2016, moving up to $587 billion (Govt. Publishing Office, Office of Management & Budget (OMB). Current projections have it going up nearly every year over the next two decades. The Congressional Budget Office expects it to permanently surpass $1 trillion annually by 2021 or 2022. But these ominous forecasts were made well before anyone thought Trump had a snowball's chance of ever becoming president. Now that he is in the office, those projections will be the floor. The ceiling is anyone's guess.