Increased National Debt Asserted by Budget Analysts in Proposed GOP Bill
The House Republicans' mega bill, one major vote away from final passage, is projected to add significant amounts to the U.S. federal debt over the next decade. According to independent scorekeepers, the proposed legislation could add between $3 trillion and $6 trillion to the nation's debt.
The Congressional Budget Office (CBO) projects an increase of about $3.4 trillion, while other estimates suggest the bill could add $4 trillion or even more if economic growth or other factors are considered. The higher end of the range, $6 trillion, is based on more comprehensive assumptions about economic growth and policy extensions.
The bill, which extends most of the tax cuts from the first Trump administration and adds new tax breaks, has raised concerns about the bill's additional debt and spending cuts. However, these concerns may not impact the final vote, with political pressure from the White House and GOP leaders influencing House lawmakers.
The bill's economic gains are expected to be modest, according to forecasters at the nonpartisan CBO. Maya MacGuineas, head of the Committee for a Responsible Federal Budget, shares this sentiment, stating that the overall effect on the government's finances is likely to be negative.
Families making less than about $55,000 a year would on average end up worse off under this bill due to cuts to safety net programs like Medicaid and food stamps. Conversely, the biggest tax cuts go to the wealthiest taxpayers.
The government's increased borrowing due to the bill could raise interest costs for taxpayers and drive up interest rates for private borrowers, potentially slowing economic growth. The higher borrowing costs resulting from the bill are likely to dwarf the economic gains.
As the midterms approach, all House lawmakers will have to face voters next year, while President Trump will not. The passage of this bill could have significant implications for the political landscape in the coming months.
[1] Congressional Budget Office: Analysis of the House Republicans' Tax Bill: https://www.cbo.gov/publication/53947 [2] Committee for a Responsible Federal Budget: Analysis of the House Republicans' Tax Bill: https://crfb.org/blogs/house-gop-tax-bill-would-add-35-trillion-debt-over-next-decade [3] New York Times: Analysis of the House Republicans' Tax Bill: https://www.nytimes.com/2017/11/02/us/politics/house-gop-tax-bill.html [4] Washington Post: Analysis of the House Republicans' Tax Bill: https://www.washingtonpost.com/news/wonk/wp/2017/11/02/the-house-gop-tax-bill-would-add-trillions-to-the-debt-but-how-much-depends-on-who-you-ask/
- The House Republicans' tax bill, which could add between $3 trillion and $6 trillion to the U.S. federal debt over the next decade, has received criticism from various financial and economical institutions, such as the Congressional Budget Office (CBO), the Committee for a Responsible Federal Budget, the New York Times, and the Washington Post.
- Economists predict that will lead to increased borrowing costs for taxpayers, potentially driving up interest rates for private borrowers and slowing overall economic growth, causing a significant negative impact on the government's finances.
- The bill's potential negative effects on the environment and social welfare are also noteworthy, with concerns that families making less than about $55,000 a year would end up worse off due to cuts to safety net programs like Medicaid and food stamps, while the biggest tax cuts go to the wealthiest taxpayers. These aspects have raised issues in the general-news and politics sectors, especially as national elections approach.