Business Report: The growth of the economy - Hawaii News Now - KGMB and KHNL

Business Report: The growth of the economy

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HONOLULU (HawaiiNewsNow) -

The most efficient way to raise taxes is not to raise tax rates. It's to let the economy grow, and reap more tax revenue at current rates. Democrats like to say Bill Clinton balanced the budget, and technically that's true, he did what Reagan and Bush never did. But his main achievement was to be president while the economy was growing. The economy is growing now, but slowly. That affects the Trump budget.

Republicans vow to raise defense spending without raising spending overall. They have to make cuts someplace, but how much depends on the economy. More revenue, less pain. The White House budget was based on 3% economic growth. The House version, about 2-and-a-half. No economist worth the name expects that, it's a fake forecast. The Congressional Budget Office projects 1.9% growth.

The problem is, if the CBO is right and the politicians are wrong, these boys are about to grow the deficit.

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