Donald Trump made a $3.7 trillion mistake in his budget

Chip Somodevilla via Getty Images
President Barack Obama signs the Affordable Care Act in the East Room of the White House

Chip Somodevilla via Getty Images President Barack Obama signs the Affordable Care Act in the East Room of the White House

Not only is the White House's criticism of the CBO based on a misleading critique of its Obamacare projection, but the video completely overlooks that a White House analysis of the House version of Trumpcare forecast even more drastic coverage losses than the CBO. Today, the Congressional Budget Office, which acts as an independent analyst for United States lawmakers, released its analysis.

Trump's budget predicts that the USA economy will soon ramp up to annual growth in gross domestic product of 3 percent; CBO's long-term projections predict annual GDP growth averaging 1.9 percent.

The CBO's report, on the other hand, estimates the budget deficit totaling $720 billion in 2027.

While the CBO gives the administration some credit for the "dynamic" effect of proposed tax cuts and savings on long term economic growth, it has largely treated many of Trump's most ambitious proposals - including more than $7 trillion of proposed tax cuts for businesses and individuals -as works in progress that can't be fully accounted for in projecting long term deficits. "The Congressional Budget Office's numbers don't add up", it claimed.

"The reduction in deficits and debt under the president's budget would be achieved by decreasing both mandatory and discretionary spending significantly compared with projections under current law", the CBO said.

There was no immediate reaction to the report from the Trump administration.

On Thursday, the White House's Office of Management and Budget found parts of the budget office's work worthy of praise. "The people I worked for in the White House would never have done this". Instead, it estimates that Trump's budget would reduce deficits by a third over the next decade relative to where they would be otherwise.

"CBO agrees that this is the largest deficit reduction package in American history", said White House budget office spokeswoman Meghan Burris, promising that Trump's economic agenda "will jumpstart the economy".

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