Extending Trump’s tax cuts would cost US trillions of dollars in new forecast 

The extension of tax cuts passed as part of former President Trump’s signature 2017 tax law will add trillions of dollars to the nation’s budget deficit over roughly the next decade, the Congressional Budget Office (CBO) says in a new report. I predicted that it was possible.

CBO said Wednesday, citing figures from the Joint Committee on Taxation, that the extension of the law’s expiring income tax provisions: Potentially adds a net $3.3 trillion This corresponds to the country’s primary budget deficit from 2025 to 2034.

“Most of the impact will occur after 2026,” the CBO said, while also noting a projection that “the deficit will increase by $467 billion due to increased net interest expenses.”

Many of the law’s personal income tax provisions are scheduled to expire next year, CBO noted, adding that these provisions “impact key elements of the personal income tax law.”

This includes statutory tax rates and brackets, allowable deductions, “the size and refundability of the child tax credit, the 20% deduction for certain business income, and the income levels at which the alternative minimum tax applies.” authorities said.

CBO also expects the potential extension of the law’s high estate and gift tax exemptions, as well as other parts of the law, to cost hundreds of billions of dollars in additional costs.

The Democratic Party was quick to grasp this prediction.

“The Trump tax cuts were a gift to the ultra-wealthy and a rotten deal for American families and small businesses,” Senate Budget Committee Chairman Sheldon Whitehouse (D) said in a statement Wednesday. .

“With the deadline looming, we have a chance to undo the damage, fix our corrupt tax code, and get big corporations and the super wealthy to start paying their fair share.”

But Republican lawmakers who have pushed to make the 2017 tax cuts permanent have pushed back against Democratic criticism of the law and defended the cuts as pro-growth, with the aim of having the CBO score the cuts.

The cuts deadline also comes as Congress looks ahead to another potentially nasty fight next year over the debt limit, which caps how much the Treasury can borrow to pay the nation’s bills.

Congress voted last year to suspend the debt ceiling until 2024, when the national debt reached $31.4 trillion.I’m standing now Over $34 trillion.