Budget Gimmicks Don't Fool the Economy

This week on Facing the Future, Jessica Riedl, a Senior Fellow at the Manhattan Institute, joined me to discuss her list of the top 10 federal budget gimmicks and the potential for tariffs to raise revenues, harm the economy or both.

 

As we went through Riedl’s list of budget gimmicks, it was clear that many of them are in play this year. She mentioned, for example, “fake expiration dates” and using a “current policy” baseline. A key feature of the recently passed congressional budget resolution is the use of a current policy baseline to assume that extending the expiration date of the 2017 tax cuts will have no budgetary effect.