President Donald Trump has acknowledged that his tax plan will increase the budget deficit, if only for a short time.
In an interview with The Economist, one exchange features the president conceding that cutting taxes will have a negative effect on the shortfall. But he said it likely will be only for a year or two.
"It is OK, because it won't increase it for long. You may have two years where you'll … you understand the expression 'prime the pump'?" Trump said, according to a posted transcript of the interview.
The current fiscal year is expected to end with a budget deficit of $534 billion, $100 billion more than last year, according to the most recent projections from the Congressional Budget Office.
Years of government spending exceeding revenue have exploded the national debt to $19.8 trillion, $14.3 trillion of which is owed by the public. During the presidential campaign, Trump repeatedly denounced the culture of debt and deficits and promised to end it once he got to Washington.
However, his aggressive pro-growth plans include sharp tax cuts for both businesses and individuals on top of more public spending. Trump believes that the growth generated from reforms will help spur business out of its post-Great Recession funk.