Static Accounting News Today

Peter doocy. lets go to the guy you see run the congressional budget office. doug, you know, the cbo, i understand this idea between static accounting and looking at things that can be effected in an active way with programs that can make it hard to predict what youll get out or the revenues that it can generate. right now its a $367 billion gap over ten years between what is being spent and what is coming in. that can change. didnt seem to bother democrats who ended up voting for it, say one, s...

I found interesting there could be the possibility, not necessarily franken, but according to republican senator langford, the possibility of democrats maybe in these states where the president won handily voting for it. so if youre joe manchin, you might do so. >> everything is a possibility. you could have more republicans defecting. they dont like the deficit nature. if you read the news, the media, its all about how -- its all static accounting. doesnt count. that this thing will blow up the...

Doing something smart. she is going out there saying we need to focus on middle class tax cuts. the most wealthy americans dont need tax cuts and we dont need to get rid of the estate tax. the majority of americans if you look at polling do not want tax cuts for the rich and they believe the currently donald trumps tax plan would overwhelmingly benefit the rich. >> melissa: well, thats interesting because the math doesnt support that. it depends on how you slice everything. ed, chuck schumer say...

Deficit go up in order to get the tax cuts as low as possible and there are others who just do not agree. it needs to be revenue neutral. you have to find the revenue savings elsewhere. and that might come from things like how much of a deduction do you allow for home mortgages or state and local income taxes and do you remove some of those deductions. there is a lot still to be figured out in terms of what it will look like in a tax bill that comes out of the house versus the senate. >> melissa...

Point than that one. we have seen every time theres significant tax reform passed, you see huge growth in the economy that ends up increasing the coffers in a way that is not evidenced when you score these things. >> neil: in other words, use dynamic accounting rather than static accounting. >> and i have a background in economics. we do know in this case that tax reform usually correlates -- it always has in our history -- correlated in increases in revenues that you get from taxes. if he wants...

Reagan cut the top rate from 70 to 50 and from 50 to 28, revenue did increase. the debt went up, also, but because spending was never cut. so spending is part of the equation. i would say cut the tax rate, seek economic growth. if revenue is declining, cut spending. >> melissa: yeah. you made a really important point there. when they talk about what these tax cuts will cost, in terms of lost revenue, its called static accounting. theyre counting on no growth when they tell you what that number i...

Signal like rein it in. >> i dont think so, neil. i think he wants lower rates, get rid of deductions, exclusions, exemptions, trump talked about that as well. where mitch mcconnell was focusing was infrastructure spending, he wants to be sure that doesnt go awry, become like stimulus spending. >> i understand that. he was talking about tax breaks. and he was talking about static accounting. i dont want to get boring. >> thats true, youre right. >> you and i both know you dont price a tax cut li...

Suggesting over the next ten years and then netted out against that the impact of the tax cuts that youre also extending into the next decade, the impact on the budget of the plunge to america increases the deficit by about $1.5 trillion to $2 trillion over the next decade. thats simple arithmetic based on the numbers you gave me. >> thats the same kind of static accounting that has led to every evaluation of every tax cut over the last 50 years going back to the john f. kennedy tax cult cuts in...