Why the CBO Almost Always Gets It Wrong - Stephen Moore

These days it seems that a mysterious group called "the CBO" rules the world, or at least Washington, D.C.

• They have made headlines with their absurd warning that the Trump tax bill to extend the 2017 tax cuts and other reforms like eliminating taxes on tips would add trillions to the debt over 10 years.

But we know this is wrong. 

• The flaw is that the models don't take account of the improved economy from keeping tax rates low and providing tax relief for small businesses and workers. 
• The White House estimates that this bill, combined with pro-America energy policies and deregulation, can raise the economic growth rate to nearly 3% -- which would mean at least another $2 trillion in added revenues...

The CBO does NOT fully measure the economywide benefits of lower tax rates and thus doesn't adjust for higher employment and growth -- which happens every time we cut tax rates...