CNBC’s Steve Liesman on Tax-Free Tips Proposal: ‘I’m Witnessing the Birth of Another Part of the Budget Deficit’

EXCERPT:

LIESMAN: “Well, you know, think about maybe a physicist who gets to witness the birth of a star. As an economics Reporter, I’m witnessing the birth of another part of the budget deficit. That’s one way to think about it, you know. This is how this happens. The the polls on the campaign trail end up making promises and that ends up having, if it becomes law, obviously, profound effects, perhaps $150 billion to $200 billion, I’ve seen over a 10-year period on the budget deficit. Other distortions happen because you treat like jobs in different ways from a taxation point of view. It is not a beloved proposal by candidate — by economists. However, it seems to be perhaps beloved by politicians.”