EX-CBO Director Holtz-Eakin Breaks Down Trump's Budget

The video discusses the US budget's long-term projections, highlighting three main issues: poor economic growth, entitlement spending, and discretionary spending. It emphasizes the need for growth through tax reform and regulatory changes. The video also explores the connection between budget decisions and health care laws, focusing on Medicaid and entitlement reforms. Finally, it outlines the timeline and challenges for budget approval.

What are the three fundamental budget problems mentioned in the video?

• High unemployment, inflation, and trade deficit

• Poor economic growth, entitlement spending growth, and discretionary spending impact

• Tax evasion, corruption, and lack of infrastructure

• Overpopulation, climate change, and healthcare costs

What is the main focus of the tax reform discussed in the video?

• Increasing taxes on luxury goods

• Implementing a flat tax system

• Reducing tax rates for individuals

• Fundamental structural changes to the tax code

What is the potential impact of a fundamental rewrite of the US tax code?

• It could decrease the growth rate by 1%

• It could have a big impact on the growth rate, possibly increasing it by half a percentage point

• It would have no impact on the growth rate

• It would only affect small businesses

What is the role of regulatory reform and infrastructure projects in economic growth?

• They are too costly to implement

• They only benefit large corporations

• They are essential for increasing productivity and growth

• They are irrelevant to economic growth

How does the video describe the relationship between health care legislation and budget decisions?

• They are unrelated and can be handled separately

• Health care decisions must be settled to proceed with budget decisions

• Health care legislation is more important than budget decisions

• Budget decisions should be made before health care legislation

What is the significance of Medicaid reforms according to the video?

• They are unnecessary and should be avoided

• They are only beneficial for the wealthy

• They are a step toward fiscal reality and better social safety nets

• They will increase the federal deficit

What challenge is associated with the timing of passing a budget resolution?

• It requires approval from all state governors

• It affects the reconciliation instructions for the health care bill

• It must be done before the fiscal year ends

• It needs to be completed before the presidential election