The nonpartisan U.S. Congressional Budget Office (CBO) released new projections Tuesday showing that President Donald Trump’s tax-cut and spending legislation would increase the federal deficit by $2.8 trillion over a decade, even after accounting for economic growth effects.
This dynamic analysis of the One Big Beautiful Bill Act, which passed the House of Representatives in May, comes as Senate Republicans are working on a revised version of the measure.
The CBO had previously estimated that the legislation would add $2.4 trillion to the federal government’s $36.2 trillion debt over ten years without considering potential economic impacts. When interest payments on the new debt are included, that figure rises to $3 trillion.
The Senate version of the bill could have an even larger fiscal impact. Independent (LON:IOG) analysts have estimated that debt increases could reach $5 trillion over a decade under the Senate proposal, which would make permanent several business tax breaks that would expire under the House version.
Source: Investing