Under Mr. Trump’s budget, the debt would decline from 76.7 percent of annual
economic output in 2018 to 59.8 percent of annual economic output in 2027.
Trump’s First Budget Works Only if Wishes Come True -
By BINYAMIN APPELBAUM and ALAN RAPPEPORTMAY 22, 2017
WASHINGTON — In its inaugural budget, the Trump administration projected
that booming economic growth would allow the president to keep a wide range of expensive campaign promises while eliminating federal deficits in 10 years.
And it all works because the budget assumes an acceleration of economic growth to an annual
pace of 3 percent a year, much higher than the post-recession average of 2 percent.
Strikingly, Mr. Trump’s budget would increase the share of the nation’s economic output the federal government collects each year.
Because the White House also projects faster economic growth, the combined effect would
increase federal revenues over the 10-year period by an estimated $2.7 trillion.
Mr. Trump wants to combine that stream of revenue with sharp spending cuts to reduce annual federal deficits.
