CBO: GOP Tax Plan Would Increase Deficit by $1.7 Trillion

| NOV 8, 2017 | 4:47 PM
Paul Ryan Donald Trump Mike Pence

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House Republicans' massive tax plan would add $1.7 trillion to the federal deficit over a period of 10 years, according to the Congressional Budget Office.

The Tax Cuts and Jobs Act, which offered a series of tax cuts to corporations and individuals, would increase total debt held by the public in 2027 to 97 percent of gross domestic product. That's 6 percent higher than CBO's projection for the debt in that year.

Passing the bill would accomplish one of President Donald Trump's central campaign promises, but the legislation already encountered resistance from both Republican and Democratic lawmakers.

Sen. James Lankford (R-Okla.) specifically rejected a tax reform package that raised the national debt too much. “I'm actually not comfortable with increasing the debt,” he told NBC's Chuck Todd on Sunday.

And on Tuesday, leading conservative Sen. Ted Cruz (R-Texas) ripped into the tax plan for raising taxes on wealthy states like New York and California.

Cruz's and Lankford's chamber — the Senate — has yet to release its plan for tax reform, although it previously passed a budget resolution allowing for $1.5 trillion in deficits.

The White House and House Speaker Paul Ryan (R-Wis.) have praised the president's endeavor to lower taxes and simplify the tax code. In a report released last month, the president's Council of Economic Advisors projected that Trump's framework for tax reform would raise GDP by 3 to 5 percent.

But leading Democratic lawmakers have attacked Republican efforts, describing their plans as a blow to the middle class.