The updated findings from the Congressional Budget Office amounted to the latest dour report card for the president’s signature legislation.The New York Times reports that the Congressional Budget Office has released updated findings on the House Republicans’ tax reform bill, revealing that it would add approximately $3.4 trillion to the national debt over the next decade. This latest report card for the president’s signature legislation also shows that the minor economic growth expected from the bill would not be enough to offset its full fiscal impact.
The C.B.O. report highlights the potential consequences of the House Republicans’ plan, which includes extending and expanding expiring tax cuts and making deep cuts to federal anti-poverty programs like Medicaid and food stamps. The report projects that the bill would only provide a 0.09 percent boost to annual GDP growth in the first few years after enactment, and even with spending cuts factored in, it would still add nearly $2.8 trillion to federal deficits by 2035. When accounting for the full costs of federal borrowing, the total amount added to the debt would be around $3.4 trillion.
These findings serve as a warning that the House bill, if signed into law, would have a significant impact on the nation’s economy and finances. The C.B.O. acknowledges that lower taxes may encourage some families and businesses to spend and invest more, but ultimately the bill’s costs would outweigh any potential benefits. This latest report adds to the growing concerns and criticisms surrounding the House Republicans’ tax reform plan, which may face revisions in the Senate before it can be passed into law.
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