“A big and beautiful invoice” from Trump will cost $ 3.4 trillion more than a decade: CBO
President Trump signed by President Trump will add a law earlier this month 3.4 trillion dollars to the country’s deficit almost during the next decade, as the CBO budget office was estimated in a Monday report.
The analysis issued by the non -party budget goalkeeper expected the bill to add $ 3.394 trillion to the country’s deficit from 2025 to 2034.
The lion’s share of the cost of the tax provisions of the plan – an essential component of the bill – which is estimated to reduce revenue by more than $ 4 trillion to 2034, also reduces federal dollars for social programs such as food stamps.
The largest tax cuts in the draft law are the extensions of the cuts that were first approved in 2017. It includes a company’s tax rate reduction to 21 percent from 35 percent in addition to discounts of most individual income tax rates.
The draft law enhances standard discount while eliminating personal exemptions.
The provisions of the main business tax in the law include a 20 % decrease in the company’s average rate of companies such as S-CORPS and LLCS, which passes the responsibility of taxes on its owners.
There is also an advanced decrease schedule for companies that allow the formation of discounts in addition to a new interest rate of interest payments, which companies that pay for assets with borrowed funds, such as the acquisition and special sectors of special equality.
The draft law also raised the ceiling of government and local tax discount – one of the most controversial provisions at the Republican Conference – to $ 40,000 from 10,000 dollars. This was a great victory for Republicans in the Blue State who threatened to raise the legislation if the cover was not raised.
The tax and spending bill includes a number of provisions entrusted to President Trump while it is in the campaign path, including changes in taxes on advice, additional work and new credit for the elderly.
The estimated revenue until 2034 related to the Senate Finance Paradise, which has a specialty on taxes in the upper room, will decrease by more than $ 4.5 trillion.
Republicans are likely to oppose the last cost, as the president and administration officials have sought to reduce the cost of the tax discounts of the plan.
The argument has extracted sharp criticism of the budget hawks, some of whom argued that the real cost of the plan is likely to be higher than the last CBO estimates, given its potential total economic effects.
“It is still difficult to believe that policy makers have just added 4 trillion dollars for debt,” Maya Makinias, head of the responsible Federal Budget Committee, said in a statement on Monday. “Many supporters of this law have spent months or years in smoke about our unusual financial situation. But when they had already had an opportunity to fix it, he instead made it 4 trillion dollars.”
On Monday, CBO estimated that the total plan, which includes major changes in Medicaid, would lead to an additional 10 million people without health insurance in 2034.
The law also includes what some Republicans praised as a “historic” batch of $ 150 billion for defense programs, along with more than $ 160 billion to help enhance the presidential and border security deportation plans.
At the same time, the draft law includes major changes that may lead to hundreds of billions of spending for medicaid, additional nutritional assistance program, new restrictions on student loan borrowers, gradual disposal of multiple popular payment plans, and changes aimed at financing the consumer financial protection office.
