Senate tax bill would add $3.3 trillion to US deficits, CBO says

[BumRushDaShow]

Source: Yahoo! Finance/Bloomberg

Sun, June 29, 2025 at 11:00 a.m. EDT


(Bloomberg) — The Senate version of President Donald Trump’s tax and spending measure would add nearly $3.3 trillion to US deficits over a decade, according to a new estimate from the nonpartisan Congressional Budget Office. The CBO score for the so-called One Big Beautiful Bill reflects a $4.5 trillion decrease in revenues and a $1.2 trillion decrease in spending through 2034, relative to a current law baseline.

The Senate bill, by Republican request, was also scored as costing $507.6 billion over a decade relative to a current policy baseline. The party’s lawmakers have sought to use the accounting maneuver to permanently extend President Donald Trump’s 2017 income-tax cuts, and score them as costing nothing.

The bill includes $4.5 trillion worth of tax cuts, according to a Saturday estimate from the Joint Committee on Taxation.

Use of the current policy baseline is unprecedented for the reconciliation process the Republicans are using to approve the massive legislation with a simple majority. The cost of a bill is normally measured according to what effect it would have on the federal budget under current law. But the Republicans want to revise the process by assuming that current policies remain in place indefinitely.

Read more: https://ca.finance.yahoo.com/news/senate-tax-bill-add-3-150052917.html

[snot]

1. And, I believe,

it's deficits that are the biggest drivers of inflation.

[republianmushroom]

2. The fiscal responsibility party. HaHaHa

How low they have sunk and they own trump.

[SouthBayDem]

3. GOP Declares Tax-Cut Extensions 'Free' to Obscure Megabill's Cost

WASHINGTON—Republicans are waving a $3.8 trillion magic wand over their tax-and-spending megabill, declaring that their extensions of expiring tax cuts have no effect on the federal budget.

The unprecedented maneuver is a crucial part of the GOP plan to squeeze permanent tax cuts through Congress on a simple-majority vote in the coming days. Republicans are expected to endorse the accounting move in a procedural vote early Monday.

“Republicans are doing something the Senate has never, never done before—deploying fake math and accounting gimmicks to hide the true cost of their bill,” Senate Minority Leader Chuck Schumer (D., N.Y.) said on the Senate floor on Sunday.

To dodge the Senate filibuster rule, which typically requires 60 votes to advance legislation, Republicans are using the fast-track reconciliation process, which forbids bills from increasing deficits beyond the 10-year budget window and needs only a simple majority.

Full story (gift link) from The Wall Street Journal

Fiscal conservatism in theory, "$3.8 trillion magic wands" in practice.