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Penn Wharton Budget Model

University of Pennsylvania research initiative producing nonpartisan economic analyses of federal policy, including tax, spending, and tariff proposals.

Known aliases

  • PWBM

Current stories

investOne report1 publisher

Holding U.S. debt flat would take 5%-6% real growth, CBO's Swagel estimates

CBO Director Phillip Swagel put the real growth needed to stop U.S. debt rising against GDP at 5%-6%, more than double the current pace. He told a Minneapolis Fed conference that what remains is tax and spending changes, which he called inherently political choices.

Publishers:fortune.com

Reality

Evidence55
Adoption
Not scored
Hype gap+10
Incentives
Not scored
Confidence60
investConfirmed9 publishers

Forty-seven days separate the Washington summit from the Nov. 10 expiry of the tariff truce

China has shipped about half the 25 million tons of soybeans it promised, and the suspension of its rare earth export controls runs out on Nov. 10. Bank of America's base case is a one-year extension.

Perspective Coverage

10 publishers
Builder
Builder 21%
Operator
Operator 32%
Investor
Investor 47%

Reality

Evidence70
Adoption45
Hype gap+10
Incentives65
Confidence68
investConfirmed5 publishers

The White House put a $303B number on tariff evasion. Read it as an audit notice

A 25-page OTMP report names about 40 countries and specific industrial districts as transshipment routes. The follow-through will land on documentation, not duty rates.

Perspective Coverage

5 publishers
Builder
Builder 19%
Operator
Operator 40%
Investor
Investor 41%

Reality

Evidence50
Adoption25
Hype gap+40
Incentives60
Confidence60
investOne report1 publisher

Importers are selling tariff refund claims at 80 cents on the dollar

February's 6-3 Supreme Court ruling left the federal government owing importers somewhere between $166 billion and $175 billion in voided tariffs. The companies collecting it are now deciding whether the money is theirs to keep.

Reality

Evidence20
Adoption35
Hype gap+40
Incentives60
Confidence25
investOne report1 publisher

A Wharton economist prices Trump's $5,000 dividend at $1.35 trillion of new borrowing

Kent Smetters of the Penn Wharton Budget Model puts the checks at about $1.35 trillion, or $1.15 trillion if a $400,000 income cap he supplied himself applies, against a federal deficit already running near $2 trillion a year.

Publishers:fortune.com

Reality

Evidence55
Adoption
Not scored
Hype gap+35
Incentives70
Confidence58
investOne report1 publisher

Tax Cuts, Spending and Crisis Response Explain 98% of America's Debt Slide From 32% to 100% of GDP

Debt held by the public went from 32% of GDP to 100% in a quarter century, and the budget hawks' own decomposition says removing any one of tax cuts, new spending or crisis response would have left it near where it started.

Publishers:fortune.com

Reality

Evidence64
Adoption
Not scored
Hype gap+28
Incentives68
Confidence55
investOne report1 publisher

The $40 trillion problem has a $32.8 trillion denominator

Debt at 122% of GDP implies an economy of about $32.8 trillion. Wharton's Kent Smetters says the growth route is "pretty clearly" not feasible, which leaves the 30-year bond setting the limit.

Publishers:fortune.com

Reality

Evidence42
Adoption20
Hype gap+42
Incentives72
Confidence38