President Donald Trump‘s signature tax and budget proposal would increase federal deficits by $2.8 trillion over the next decade, according to a dynamic analysis released Tuesday by the nonpartisan Congressional Budget Office (CBO) and Joint Committee on Taxation. Factoring in economic feedback and interest costs, the bill would also drive $441 billion in added debt service due to rising interest rates.
Earlier CBO projections using static scoring estimated a $2.4 trillion deficit increase and projected 10.9 million more people would lose health coverage. Marc Goldwein of the Committee for a Responsible Federal Budget said the plan “is not paying for any of itself.”
Despite Republican claims that tax cuts will spur growth, CBO’s dynamic analysis indicates the opposite. GOP senators also proposed deeper Medicaid cuts, including work requirements for parents of teens, to offset costs. Meanwhile, the proposal maintains the $10,000 SALT deduction cap, drawing opposition from Republicans in high-tax states.
Trump is urging Congress to pass the bill by July 4, despite mounting fiscal concerns.
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