The CBO has not come all the way to our side, but it is nevertheless a partial confirmation of our view of the US economy. Broad-based tariffs will generate economic growth, create jobs, and raise household incomes, with only a very minor one-time increase in consumer prices.
The Congressional Budget Office’s (CBO) preliminary report on the impact of tariffs on the U.S. economy forecasts large benefits to the federal budget from tariffs and a tiny consumer price increase, confirming recent forecasts published by the Coalition for a Prosperous America.
A mostly Democratic Party panel of members of the Joint Economic Committee (JEC) held a hearing on tariffs on Wednesday, where the room was heavily weighted against incoming president Trump’s 10% (or 20%) universal tariff proposal.
