A new analysis from the Peter G. Peterson Foundation estimates that Republican-backed tax cut proposals, including extensions of former President Trump’s 2017 Tax Cuts and Jobs Act, could add $9.1 trillion to the U.S. deficit over the next decade if not offset.
Roughly $5 trillion of the projected deficit increase would stem from fully extending the 2017 tax cuts. Other proposals contributing to the total include eliminating taxes on tips and overtime, restoring the full SALT deduction, reducing the corporate tax rate for domestic production to 15%, and ending taxes on Social Security benefits.
The latter proposal, supported by Trump during his campaign, is estimated to cost $1.4 trillion, including interest.
Republicans, who are pursuing a major tax package through budget reconciliation, argue the cuts will boost economic growth. However, the Congressional Budget Office projects deficits will rise sharply if the tax cuts are extended, with debt reaching 214% of GDP by 2054.
The national debt currently exceeds $36 trillion.
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