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Defying the Odds

Defying the Odds
New book about the 2016 election.

Wednesday, January 22, 2020

Trump Hits at Entitlement Cuts

In Defying the Odds, we discuss the tax and economics issue in the 2016 campaign.  The 2019 update includes a chapter on the 2018 midterms. and explains why the Trump tax cut backfired on Republicans.

CNBC:
JOE KERNEN: Do I dare-- one last question.
PRESIDENT TRUMP: Go ahead.
JOE KERNEN: Entitlements ever be on your plate?
PRESIDENT TRUMP: At some point they will be. We have tremendous growth. We’re going to have tremendous growth. This next year I-- it’ll be toward the end of the year. The growth is going to be incredible. And at the right time, we will take a look at that. You know, that’s actually the easiest of all things, if you look, cause it’s such a--
JOE KERNEN: If you’re willing--
PRESIDENT TRUMP: --big percentage.
JOE KERNEN: --to do some of the things that you said you wouldn’t do in the past, though, in terms of Medicare--
PRESIDENT TRUMP: Well, we’re going-- we’re going look.
Jeff Stein at WP:
It was unclear what Trump was referring to when he mentioned unprecedented growth. The economy is growing but not as fast as it has in the past, though the stock market is at record levels.

Adding to the confusion are private remarks Trump recently made that appeared to dismiss the importance of the budget deficit, which has ballooned to about $1 trillion a year under his administration.

The U.S. government is expected to spend $4.6 trillion this year, according to the Congressional Budget Office, and only bring in $3.6 trillion in revenue, leaving the $1 trillion gap. The government finances that gap by issuing debt to borrow money, and it is projected to pay close to $400 billion in interest on that debt this year.