Tax Bill Adds $1 Trillion To Deficit (Without Cutting Taxes For Most)

Nonpartisan analysis, from several places, shows the Senate tax bill will all $1 trillion to the deficit. What’s next?

The stock market surged today on news that Senator John McCain would vote for the tax package. As it stands, however, the bill does not remotely come close to passing budget rules.

Automatic tax hike triggers is one option if the bill does not bring in the anticipated revenue. And here’s an advance hint: It won’t. However, tax triggers may very well happen in the middle of the next economic downturn. And Republicans are loathe to pass tax hikes under any circumstances.

Deficit Fiasco

Please consider The Senate’s Official Scorekeeper Says The Republican Tax Plan Will Add $1 Trillion to the Deficit.

Senate Republicans’ $1.5 trillion tax cut would not “pay for itself” according to a report released on Thursday by the nonpartisan Joint Committee on Taxation. The report is a significant setback for Republicans, who have asserted that the tax cuts would grow the economy enough to cover the cost of the plan.

Plan Will Not Pay For Itself

Other Models

Senate Bill Estimates

House Bill Estimates

Tweet Deleted

It’s truly a joke (and a bad one at that) for Republicans to announce the bill had passed when it hasn’t.

The Hill reports the Tweet was deleted.

GOP Scrambles for Deficit Offset

The New York Times reports G.O.P. Seeks More Offsets After Analysis Says Tax Bill Adds $1 Trillion to Deficit.

• Republican Senators are considering raising some taxes down the road to help offset the deficit cost of their tax bill after the Senate parliamentarian rejected the idea of a trigger that would have automatically increased taxes if revenues failed to cover the cost of the cuts.

• The Joint Committee on Taxation said that economic growth from the tax cut will only offset $407 billion of the $1.5 trillion cost over the next decade. The analysis complicates the Republican argument that the tax bill will essentially pay for itself.