The latest estimate from the Congressional Budget Office indicates that the tax and spending bill signed by President Trump will increase the U.S. deficit by $3.4 trillion over the next 10 years and cause millions to lose health insurance.
An assessment released by the Congressional Budget Office on Monday (July 21) shows that this bill will lead to a revenue decrease of $4.5 trillion and a spending decrease of $1.1 trillion by 2034. The latest analysis does not account for so-called dynamic effects, such as the potential impact of the bill on economic growth or interest rates in the future.
After months of negotiations with Congressional Republicans, Trump signed what he calls the 'Big and Beautiful' bill on July 4. The tax and spending bill encompasses most of Trump's economic agenda, including the permanent extension of the income tax cuts he implemented during his first presidential term in 2017 and some corporate tax cuts, raising the cap on state and local tax deductions (SALT), and providing temporary tax breaks for tips and overtime pay.
The passage of the 'Big and Beautiful' bill has prompted some economists and investors to warn that the U.S. budget deficit will further widen, which could push up borrowing costs and inflation. The Trump administration pointed out that tariffs imposed on most U.S. goods this year have led to record high tariff revenues, which will help offset the fiscal gap.
The bill also includes several spending cuts aimed at reducing the deficit and offsetting costs, which involve providing Medicaid for low-income individuals. #NFT板块领涨 #