A
rational person would think the President would heed the warning of the CBO and alter his plans so as not to make the deficit problem worse. A
rational President would alter his plans, to actually reduce the deficit somewhat. Trump could start by holding military expenditure constant, so in constant dollars military spending would decline by about two percent a year. A
rational President would retain the medicare supplemental tax on single tax payers above 200K and joint filers above 250K. Who do they think they are kidding when they increase expenditures and cut revenues? This is the same supply side economics that George H. W. Bush called Voodoo economics, and he was right. It's this voodoo economics that produced steadily falling real wages and the incredibly high Reagan, and later and G.W.Bush, deficits. The burden of dealing with the latter spilled over into the Obama administration.
If you want to boost the economy, do it on the demand side! Raise the minimum wage to a living wage and lower the tax rates on middle income earners. This will boost the economy and revenues will increase* instead of decreasing as they did during the Reagan Presidency. Cuts at the bottom end must to some extent be made up by reduced spending on wasting assets, ie. military hardware, but not on investment and infrastructure. Failing that, tax rates at the high end of must rise. The best way to accomplish the latter is through introduction of more brackets, i.e. a restoration of progressive.
Demand side stimulus benefits the rich and poor alike. You can't make everyone better off by giving money to the wealthy. But you can avoid significantly impacting the wealthy while vastly improving the lot of the middle class by leaving more capital with the middle class. That's not intuitively obvious, but that's how economics work.
Below is a link to a fine article about supply side economics, also called Voodoo economics, trickle down economics, or Reaganomics. Not mentioned is the
tax increase in the lowest bracket that became necessary when Congress insisted that tax cuts in the upper brackets be revenue neutral, after the ill effects of the drastic bracket compression of the 1981 cuts became evident. This led to a series of tax increases. The overall effect of tax policy during the Reagan administration was to increase the total tax burden at the low end slightly and reduced it drastically at the top end -- social security and medicare taxes were raised as was the lowest bracket rate. This shifting of the revenue burden has been only partly undone in subsequent years. The compounded result of these policies in large measure explains the exponential shape of the wealth distribution curve with time. Most of the capital is accumulating at an ever increasing rate at the top end, while real wages continuously fall at the bottom end. This is unsustainable.
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*Assuming the top tax levels are relatively low, as they are today.
See:
https://en.wikipedia.org/wiki/Reaganomics
