Home / World News / Senate tax bill would swell deficit by $1 trillion even with economic progress, analysis says

Senate tax bill would swell deficit by $1 trillion even with economic progress, analysis says

The Senate Republican tax bill would increase the federal budget deficit by $1 trillion over the next decade even when taking into account increased economic growth, according to a congressional analysis released Thursday.

The so-called dynamic score from the Joint Committee on Taxation estimated that the tax cuts and other changes in the bill would boost the nation’s economic output by an average of 0.8% over the 10-year period.

That would reduce the bill’s earlier estimated $1.5-billion deficit impact, which was calculated without taking into account potential economic growth, by about $408 billion.

But the bill still would add $1 trillion to the deficit, undercutting assertions by Republican leaders and Trump administration officials that the additional growth spurred by the bill’s large tax cuts would pay for themselves over time.

Sen. Ron Wyden (D-Ore.), who pushed for the analysis to be released ahead of a vote on the bill this week, said the report “ends the fantasy about magical growth and claims the tax cuts pay for themselves.”

“It is the total opposite of what the Senate sponsors and Trump administration have been claiming now for months,” Wyden told reporters.

The report could create problems for some Republicans, including Sens. Bob Corker of Tennessee and Jeff Flake of Arizona, who have said they would not vote for a bill that adds to the deficit.

Julia Lawless, a spokeswoman for Senate Finance Committee Chairman Orrin Hatch (R-Utah), said the analysis does not reflect the final tax bill, which is still being considered and likely to be amended.

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