The "Giant, Beautiful Trump Tax" Bloopers: Predicted $2.8 Trillion in US Debt Amplification
- ⏱️ ~1 Min Read
U.S. Study Predicts Trump's Tax Policy to Generate additional Billions in National Debt - Potential increase in U.S. debt due to Trump's tax legislation
In a surprising twist, the nonpartisan Congressional Budget Office (CBO) has unveiled a new estimate suggesting that the Tax and Spending Bill, orchestrated by US President Donald Trump, would swell the US budget deficit by an astounding $2.8 trillion over the upcoming decade. This revelation encompasses favorable economic influences, whereas an earlier estimate, absent these elements, projected an addition of $2.4 trillion, accumulating the total debt to a blistering $36.2 trillion. Adding interest costs bumped the figure up to $3 trillion.
Stumbling Blocks for Trump's "One Fabulous Finance Plan" in US Congress
This fresh estimate contradicts the rosy picture painted by Trump's Republicans, who proclaim that the all-encompassing bill would ignite the US economy, ultimately erasing the national debt through heightened revenues. On Tuesday, Senate Majority Leader John Thune expressed his confidence, stating, "We're certain it'll foster a stronger, more prosperous America."
Upon the House of Representatives' endorsement of the bill, dubbed the "One Big Beautiful Bill Act," back in May, Republicans in the Senate are now wrestling with a revised version. To progress into law, there must be agreement on a unified version among both chambers of Congress. Once they agree, the concurred version will be jettisoned towards Trump for his signature.
The draft essentially prolongs the gigantic tax reductions stemming from Trump's preceding term, which are due to lapse at year's end. To counterbalance this, proposals for deep cuts to the Medicaid healthcare program, which caters primarily to low-income and aged citizens, are on the table.
- Tax Bill
- Donald Trump
- USA
🔍 Additional Insights:- The 2025 House Republican tax bill is speculated to add approximately $3.8 trillion to federal deficits from fiscal years 2025 to 2034 [1].- Another analysis estimates that the significant tax provisions in the Senate GOP tax plan could reduce federal revenues by around $4.8 trillion between 2025 and 2034, when dynamic effects on GDP growth (estimated at a 1.1% increase in long-run GDP) are factored in, reducing the revenue loss to approximately $3.9 trillion over that period [3].- The House GOP’s "One Big Beautiful" tax bill is estimated to increase long-run GDP by 0.6%, yet simultaneously reduce federal tax revenue by about $4.0 trillion from 2025 through 2034 on a conventional basis [5].
- The Tax and Spending Bill, orchestrated by US President Donald Trump, is projected to swell the US budget deficit by $2.8 trillion over the upcoming decade, according to the Congressional Budget Office.
- This new estimate for the Tax Bill contradicts the rosy picture painted by Trump's Republicans, who assert that the bill will erase the national debt through heightened revenues.
- The draft of the Tax Bill essentially prolongs the tax reductions initiated by Donald Trump's preceding term, while proposals for deep cuts to the Medicaid healthcare program are being considered to counterbalance this.
