The Shocking Truth Behind "Big Beautiful Bill" - Trump's Tax Plan Adding Trillions to US Debt
Analysis suggests Trump's tax reform could generate unprecedented U.S. debt levels in trillions. - Massive potential for US debt expansion due to Trump's proposed tax legislation
Let's break down the lowdown on President Donald Trump's ambitious tax and spending bill, commonly known as the "One Big Beautiful Bill Act." According to the nonpartisan Congressional Budget Office (CBO), this bill could potentially send the US budget deficit skyrocketing by a staggering $2.8 trillion over a decade. They shared these figures on Tuesday, taking into account economic growth implications.
Originally, the CBO anticipated a hike in public debt from the present $36.2 trillion to an additional $2.4 trillion – without considering economic growth impacts. This estimate climbed to $3 trillion when factoring in interest costs. However, the most recent dynamic CBO analysis showed a more drastic increase to $2.77 trillion over the next ten years.
But hold up! Trump's Republicans claim the sweeping package would spur the US economy enough to lower public debt via increased revenues. Senate Republican leader John Thune echoed this point on Tuesday, stating, "We fucking believe it'll lead to a stronger, more prosperous America."
Despite the House of Representatives passing the bill back in May, implementing the "Big Beautiful Bill" isn't set in stone just yet. Senate Republicans are currently deliberating a revised version, and it's essential that both chambers of Congress reach a mutual agreement on the bill before it can even land on Trump's desk.
The bill's current iteration extends the tax cuts from Donald Trump's first term, which were on track to expire at the end of the year, all the way up to 2021. Balancing this out is the proposed slashing of the Medicaid healthcare program, primarily serving low-income and elderly populations.
To put it all in perspective:
- The CBO projected the bill to reduce revenues by over $3.5 trillion through tax cuts, with spending reductions estimated to be about $774 billion over the same ten-year period.
- Tax cuts amount to around $3.7 trillion, while spending cuts are a mere $1.2 trillion. Despite these reductions, the net effect is a significant deficit increase once revenue losses and spending changes are accounted for.
- Higher uninsured rates and increased interest costs on the federal debt are among the economic implications. In fact, the CBO predicts that the bill’s changes to Medicaid and Affordable Care Act enrollment rules will lead to approximately 16 million more uninsured Americans and around 10.9 million losing Medicaid coverage alone.
- It's worth noting that while the Trump administration suggests tariffs and other measures in the bill could lower the deficit by several trillion dollars, these figures are contentious. Focusing on the bill’s direct fiscal impact, the nonpartisan CBO's estimates still show a substantial increase in deficits.
- The tax law proposed by President Donald Trump, known as the "One Big Beautiful Bill Act," has stirred controversy in the realm of politics, business, finance, and general-news, with the nonpartisan Congressional Budget Office predicting it could increase the USA's budget deficit by a significant $2.77 trillion over a decade.
- In the wake of the CBO's dynamic analysis, the proposed tax law raises concerns about future implications on the economy, including an increase in the number of uninsured Americans and a surge in interest costs on the federal debt, while the net effect shows a significant deficit increase despite initial proposed spending reductions.
