Trump Tax Bill Would Add $2.4 Trillion to the Deficit Over a Decade, Warns CBO

Trump Tax Bill's Impact on Fiscal Stability

Recent estimates from the CBO indicate the Trump tax bill would add $2.4 trillion to the national deficit over the next decade, presenting significant implications for fiscal stability.

Revenue Decrease and Spending Cuts

• The tax cuts aim to lock in expiring features of the 2017 tax law.
• Projected revenue decrease exceeds $3.6 trillion during the same timeframe.

Federal Spending Cuts

• Accompanying measures to cut federal spending may lower outlays by $1.2 trillion.
• House Republicans target a minimum of $1.5 trillion in spending cuts.

Future Implications and Economic Landscape

As analysts warn of potential increases in the uninsured population, there are concerns regarding healthcare reforms that accompany the proposed tax measures. Funding for programs such as Medicaid will also be closely monitored, as they play a critical role in maintaining healthcare access for vulnerable populations.

The CBO anticipates a continued rise in the national debt, growing from around 100% to 120% of GDP, consequently affecting economic policies moving forward. Deutsche Bank analysts highlight that budget deficits are expected to remain between 6.5 to 7% of GDP, indicating limited progress on reducing the deficit.