Budget office says Trump's tax law will add $3.4 trillion to deficits, leave 10 million uninsured
More than 10 million people will be uninsured under the law in 2034 because of the law, CBO found, an improvement from an earlier projection that found 11.8 million people losing coverage over the decade.
The release of the CBO analysis Monday comes at the end of a grueling legislative fight, but at the start of a longer political struggle to come as the two parties clash over the law's impact on the economy, healthcare and government programs. Republicans are touting the bill as a tax cut for all Americans, yet a recent AP-NORC poll found about two-thirds of U.S. adults expect the new tax law will help the rich as Democrats attack the legislation.
The bill Trump signed into law on July 4 extended current tax rates for individuals that were set to expire at the end of this year and temporarily created new tax deductions for tips, overtime and auto interest loans for new vehicles assembled in the U.S. Republicans also used the bill to cut future spending on Medicaid and food assistance, and to phase out certain clean energy tax credits more quickly.
Democrats were quick to highlight the CBO's findings.
'Today's report reminds us of something: facts are stubborn and the facts are clear,' said Senate Democratic leader Chuck Schumer. 'The big, ugly betrayal is a loser for the country and will be a loser for the Republicans.'
Republicans say the bill was critical to ensure most Americans didn't experience a significant tax increase next year. Trump and Republicans have also insisted that economic growth will exceed the CBO's projections for the next decade, erasing the projected deficits as more revenue comes into the Treasury than anticipated.
Nonpartisan fiscal watchdogs also highlighted the CBO's latest projection. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said there will be a shorter-term 'sugar high' as stimulus makes its way through the economy. But modelers from across the ideological spectrum agree that any sustained economic changes are likely to be modestly beneficial, or negative.
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'And not one serious estimate claims this bill will improve our fiscal situation,' MacGuineas said. 'Rather, positive growth effects are likely to be swamped by the effects of higher debt and interest rates.'
The CBO said more than $1 trillion in deficit savings is generated through the health portions of the bill, which includes new work requirements for certain Medicaid beneficiaries in states that expanded the program through the Affordable Care Act.
Some late changes on Medicaid were made to the bill to win over holdouts. One of those changes added a $50 billion fund for rural hospitals.
__
Associated Press writer Mary Clare Jalonick contributed to this report.
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Toronto Sun
13 minutes ago
- Toronto Sun
HANSON: Revenge or justice?
By needlessly and falsely claiming Russia intervened in two elections directly to partner with Trump, Obama-era officials and Clinton-campaign activists destroyed President Trump's own credibility to sustain a workable relationship with a nuclear Russia Former US President Barack Obama speaks with President-elect Donald Trump before the State Funeral Service for former US President Jimmy Carter at the Washington National Cathedral in Washington, DC, on January 9, 2025. Photo by Roberto Schmidt/AFP / Getty Images Director of National Intelligence Tulsi Gabbard just released a trove of apparently once-classified documents – with promises of much more to follow. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The new material describes the role of the Obama administration's intelligence and investigatory directors – purportedly along with former President Barack Obama himself – in undermining the 2016 Trump presidential campaign. In addition, their efforts extended to sabotaging the 2016-2017 presidential transition and, by extension, the first three years of the Trump presidency. The released documents add some new details to what over the last decade has become accepted knowledge. Congressional committees, special prosecutors, and the inspectors general had all previously issued reports that largely confirmed the general outlines of the skullduggery that began in 2015-16. Hillary Clinton's campaign, later aided by the top echelon of the FBI, CIA, and the Director of National Intelligence, sought – falsely – to seed a narrative that Trump had colluded directly with Russia to win unfairly the 2016 election. This advertisement has not loaded yet, but your article continues below. When that campaign gambit failed to alter the 2016 results, the Obama administration doubled down during the transition to undermine the incoming Trump presidency. RECOMMENDED VIDEO Next, Special Counsel Robert Mueller's 'all-star' legal team found no evidence of direct Trump-Putin collusion to hijack the election. But his investigation did sabotage 22 months of Trump's first term, marked by constant leaks and hysterical rumours that Trump was soon to be convicted and jailed as a 'Russian asset.' By 2020, the frustrated intelligence agencies and former 'authorities' now absurdly further lied that Hunter Biden's incriminating laptop had 'all the earmarks' – once again – of Russian interference. So, what could be new about Gabbard's latest release? Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. One, after the 2016 election of Donald Trump but before his inauguration, Obama convened a strange meeting with his outgoing intelligence and investigatory heads – CIA Director John Brennan, Director of National Intelligence James Clapper, FBI Director James Comey, National Security Advisor Susan Rice, and a few others. Contrary to a four-year Democratic Party narrative that '18 intelligence agencies' had long claimed Russian collusion, the top directors apprised Obama that their expert colleagues had found no such evidence of Trump-Putin collusion. Yet outgoing President Obama allegedly directed them to ignore such an assessment. Instead, they began spreading narratives that President-elect Trump had been colluding with the Russians. This advertisement has not loaded yet, but your article continues below. Leaks followed. Media hysteria crested. And soon Mueller and his left-wing 'dream team' of lawyers targeted President Trump. Read More Further new information may confirm that Brennan's CIA – and those he briefed in the Oval Office – had known for some time that the Russians themselves were confused about why they were falsely being accused of colluding with Trump to rig the election. Of course, Russian operatives, like their Chinese counterparts, often seek to cause havoc in American institutions, such as hacking emails or spreading online disinformation. But they may have been nevertheless curious why Hillary Clinton was making such false accusations that they were working directly with Trump, and why the Obama administration was acting upon them. This advertisement has not loaded yet, but your article continues below. Obama has now claimed these new charges are outrageous and beneath the dignity of the presidency. He did not, however, flatly contradict the new information. He should have issued an unambiguous denial that he had never ordered his intelligence chiefs in December 2016 to ignore their associates' assessments and instead to assume Trump's collusion with Putin. These sustained efforts of the Clinton campaign, Obama appointees, and ex-intelligence chiefs and their media counterparts between 2015 and 2020 severely undermined the 2016 Trump campaign. They bushwhacked the 2017 presidential transition. They hamstrung the Trump presidency. And they may well have hurt Trump's 2020 election bid. RECOMMENDED VIDEO This advertisement has not loaded yet, but your article continues below. Summed up, here is the damage caused by the Trump-Putin collusion lies: 1. They emboldened 'experts' in 2020 to again lie blatantly and shamelessly to the American people that the incriminating Hunter Biden laptop was yet another fake product of Russian interference to help re-elect Trump. 2. The media was equally guilty. 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Montreal Gazette
13 minutes ago
- Montreal Gazette
Montreal church to be slapped with fine after hosting pro-Trump singer without permit, city says
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Winnipeg Free Press
13 minutes ago
- Winnipeg Free Press
Trump says Japan will invest $550 billion in US at his direction. It may not be a sure thing
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