Trump Tax Law to Add $3.4 Trillion to US Deficits, CBO Says [View all]

President Donald Trump’s recently enacted tax and spending law will add $3.4 trillion to US deficits over a decade and leave millions without health care coverage, according to a new estimate from the nonpartisan Congressional Budget Office.

The CBO score for the law, released Monday, reflects a $4.5 trillion decrease in revenues and a $1.1 trillion decline in spending through 2034, relative to a current-law baseline. The new analysis doesn’t incorporate so-called dynamic effects, such as the impact on growth or interest rates over time that the legislation’s measures might have.

Trump signed the “One Big Beautiful Bill” into law on July 4 after months of negotiations with congressional Republicans. Encompassing much of Trump’s economic agenda, it permanently extends his 2017 income-tax cuts and some breaks for businesses, lifts the cap on federal deductions for state and local taxes and eliminates taxes on tips and overtime on a temporary basis, among other provisions.

Passage of the law triggered warnings from some economists and investors about a widening of America’s budget shortfall — already large by historical standards — that could push borrowing costs and inflation up. The Trump administration points to record collections from the tariffs he’s imposed on most US imports this year, saying that revenue will help fill the gap.

https://finance.yahoo.com/news/trump-tax-law-add-3-185551565.html