The cost of extending the 2017 tax cuts enacted under President Donald Trump has expanded to $3.8 trillion over ten years, putting a massive price tag on what is likely to be a top issue in Washington next year, according to new estimates from Congress’s fiscal scorekeeper.
The Congressional Budget Office’s estimate, released Wednesday, is double the $1.9 trillion cost of the original Trump tax cuts — a more expansive bill which also included permanent reductions in corporate taxes.
The expiring portion of the tax cuts include reductions in individual tax rates and an expansion of the child tax credit. The new CBO cost estimate for renewing just that portion is up from a $3.5 trillion estimate made last year for extending the tax cuts, which are scheduled to sunset at the end of 2025.
Swagel said personal income tax cuts don’t stimulate economic growth as much as the permanent business tax cuts.
Swagel said that CBO raised its projection for this year’s budget deficit upward from the $1.6 trillion estimate issued in February, approaching $2 trillion. The recently enacted $95 billion Ukraine, Israel and Taiwan aid package, an FDIC bank rescue and increased federal student loan forgiveness all are worsening the deficit outlook for the year and decade.
The one and only way to prevent a skyrocketing in Federal tax rates in tax year 2026 and beyond is to elect Mr. Trump accompanied by a Republican House and Senate in November.
One chance only, last chance, so vote wisely, if you can.
That would be a catastrophe of incredible magnitude. You want to put a guy in charge who has been on the campaign trail sounding like a 1930's European fascist? You might want to study a little current world history. Hugo Chávez was a democratically elected President of Venezuela. How did that work out for the Venezuelans? It was the last democratic election that country has seen ever since. [I'm not counting the fraudulent ones like Putin conducts]
Or Hungary under Viktor Orbán. Democratically elected, but taking over the country as an autocratic leader.
Think before you leap.
@Freedom762wks2W
Actually, Biden sounds more like the 1930s fascist, promising many of the same things Adolf Hitler did. You'd be surprised at how left-wing the Nazi Party actually was, if you bothered to research the principles they campaigned on. Of course, you haven't done that – instead you accepted CNN's propaganda without thinking.
@V0terTigerForward2wks2W
The 2017 tax law raised my taxes due to the limitations on SALT and some other changes. Trump did this middle class taxpayer no favors. But Biden's Inflation Reduction Act lowered my federal taxes significantly due to the clean energy credit I got for installing solar panels. For me, Biden generated an investment in clean energy and lower taxes; Trump, nothing but heartburn.
@InnocentPollingPlace2wks2W
the SALT cap was the first clear attempt at economic warfare against blue states by a federal government in Republican hands. They literally tried -with some success- to move economic activity out of blue states into red by making it cheaper to employ people on red states. If the Republicans get back in power expect more and worse.
@TalentedC0nsensu5Green2wks2W
Tax cuts for the wealthy NEVER trickle down to regular folks. Never. It is always a scam to further enrich the wealthy on the backs of everyone else.
@LyingHareDemocrat2wks2W
Ronald Reagan started the "trickle down" nonsense that continues to add to the national debt. We must increase the corporations taxes!
@SyrupJonnyDemocrat2wks2W
I can only say - from my personal perspective - on a gross income which placed me in the top 4% of Americans - the Trump tax cuts did not reduce my taxes by one penny. On a virtually identical income in 2017 and 2018. My tax rate went down, but I lost most of my itemized deductions. End Result. My taxes in 2018 actually went up $150.
The Trump tax cuts were just another of his great con jobs.
@D3baterZoeDemocrat2wks2W
This looks like an effort disassemble the Trump corporate tax cuts into different parts in order to declare that “see, this part worked!” while ignoring that the other part was a huge giveaway that only benefitted shareholders through record stock buybacks at the expense of the national debt.
The net is that GDP growth is higher now and unemployment lower due to huge investments in infrastructure, renewable energy, health care, environment, tax collection and other long term public benefits stemming from Biden era legislation.
@Pl4tformLucyLibertarian2wks2W
If the tax rate was 0% there would be no tax revenue. If the tax rate was 100% there would also be no tax revenue (and no GDP). In between revenue first rises, then peaks, and finally falls. The The Tax Cuts and Jobs Act cut rates but revenue went up. This implies the rate had been above its peak level, which is not good. It should not be called a cut if revenue increases.
So the tax cut increased government debt for the benefit of corporate America. Isn't that what the GOP calls a hand-out?
The average increase in wages of $750 annually works out to less than $15 a week. I doubt the "average" worker noticed it.
@OctopusBrandonSocialist2wks2W
Part of the mass income redistribution to the wealthy. This is why America’s political class is being given massive campaign donations by the wealthy and corporations.
@ISIDEWITH2wks2W
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