Billionaire Warren Buffett said Monday he was very suspicious of "dynamic scoring," a measure the Trump administration will have to use to keep the federal budget somewhat balanced while keeping President Donald Trump's proposed tax cuts in place.
"Everybody that wants a cut in taxes can hire some academics, and they look for dynamic scoring, and they say the country will really be better off if I pay less tax," Buffett told CNBC's Becky Quick on "Squawk Box."
"I don't blame them, it's very understandable. So, be very, very, very suspicious of dynamic scoring."
Dynamic scoring, to many, is a smokescreen to justify tax cuts without having to pay for them, according to the Tax Foundation's Center for Federal Tax Policy. Dynamic scoring follows supply side economics, which argues tax cuts spur economic growth which, in turn, offsets any increased deficit resulting from tax cuts.
"If 'dynamic scoring' means that Congress can use any macroeconomic model it wants, then we are thrown back 100 or 150 years in terms of the rigor of our thinking," the Tax Policy Center wrote. "There are too many models with a very wide variety of assumptions and implications. It is not exactly true that you can find a model that will support any claims, but this is sometimes uncomfortably close to the truth."
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