With inflation running hot and the economy cooling, West Virginia Sen. Joe Manchin doesn’t need another reason to oppose a big tax hike-and-spending bill. But the Congressional Budget Office has given him one anyway, with its updated budget outlook that is even bleaker than its forecast last summer.
The good news is that tax revenues are booming. CBO projects that revenue this year will rise to 19.6% of GDP, the highest since 2000, and average 18.1% of the economy over the next decade. Higher tax revenue projections will shave $2.1 trillion off the deficit over 10 years. We don’t need to raise taxes to reduce the deficit.