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Statement·other·said 2025-01-05

Every 1 percent increase in GDP generates about $3 trillion in additional tax revenue.

Where they said it
Verdict
Mixed
2023-02-15
Reasoning

CBO's long-run dynamic analyses indicate that a sustained one-percentage-point boost in real GDP growth raises cumulative federal revenue by roughly $3 trillion over a 10-year window, so the order of magnitude is defensible — but only as a 10-year cumulative figure, not annual. The statement omits the time horizon, making it misleading without context.

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