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.
'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.
Kevin Freking, The Associated Press
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time Magazine
a minute ago
- Time Magazine
Trump's Battle With Sanctuary Cities Dealt Major Blow
Donald Trump has been dealt a significant setback in his ongoing battle over sanctuary cities, after a U.S. federal judge threw out the Administration's lawsuit which looked to block legislation in Illinois that limits local law enforcement from cooperating with federal immigration authorities. The Trump Administration argued that existing so-called 'sanctuary laws' in the state run counter to federal laws because they restrict local officials from sharing information with federal agents, stopping immigration officials from identifying people who 'may be subject to removal.' But those concerns were dismissed by Judge Lindsay C. Jenkins, who said finding sanctuary policies as 'impermissible regulation'would run counter to the Tenth Amendment. 'It would allow the federal government to commandeer States under the guise of intergovernmental immunity—the exact type of direct regulation of states barred by the Tenth Amendment,' said the judge. Jenkins, who was appointed by former President Joe Biden, added: 'Because the Tenth Amendment protects defendants' sanctuary policies, those policies cannot be found to discriminate against or regulate the federal government.' Trump's war with sanctuary cities began on day one in office, with an Executive Order, titled 'Protecting the American People Against Invasion.' In the Executive Order, Trump argues that sanctuary jurisdictions 'seek to interfere with the lawful exercise of Federal law enforcement operations,' and calls on the Attorney General and Secretary of Homeland Security to withhold federal funding from these cities. In April, Trump then signed an Executive Order asking Attorney General Pam Bondi and the Department of Homeland Security (DHS) identify cities and states that don't sufficiently comply with Trump's federal immigration laws within a month. It is a continuation of Trump's first term, during which he also signed an Executive Order that looked to ensure sanctuary jurisdictions did not receive federal funding. At the time, though, multiple cities sued Trump, and the courts subsequently upheld the legality of such provisions. Read More: What Are Sanctuary Cities and Why Is Trump Targeting Them? Though Trump's battle might be lost in Illinois, his Administration continues to fight across the country. The day before the lawsuit in Illinois failed, Thursday, the Department of Justice (DOJ) announced new legal action against New York City for its sanctuary laws. Earlier this week, Louisville, Kentucky chose to acquiesce to the administration's immigration policies and cease its designation as a sanctuary city. As human rights organizations argue for the importance of sanctuary and some cities push back against what they view as federal government overreach, the question remains which cities are fighting back against the crackdown. Chicago's and Illinois leadership was very clear in its desire to challenge Trump's immigration policies. Illinois Gov. J.B. Pritzker celebrated the ruling on X, saying that, 'Illinois just beat the Trump Administration in federal court.' 'This ruling affirms what we have long known: that Chicago's Welcoming City Ordinance is lawful and supports public safety,' Chicago's Mayor Brandon Johnson said in a statement responding to the ruling, saying he was 'pleased' with the decision. 'Chicago cannot be compelled to cooperate with the Trump Administration's reckless and inhumane immigration agenda.' Chicago's status as a sanctuary city is just one iteration of the term—though the long-time Democratic city has been designated as such cities that limit information shared with federal immigration officers. Though there is no specific definition for a sanctuary city, the term refers to jurisdictions with a wide range of laws in place to limit their cooperation with federal immigration enforcement. For Chicago in particular, their 'Welcoming City Ordinance,' argues that 'partnering with [Immigrations and Customs Enforcement (ICE)] would go against our mission to make Chicago the most immigrant friendly city in the country and turn ours into a community of fear for immigrants.' The Trump Administration, though, also has ongoing suits against not just New York City but also Los Angeles, Denver, Rochester, and four cities in New Jersey. Tom Homan, President Trump's 'border czar,' also has laid out the administration's plans to continue combat sanctuary cities. Read More: Sanctuary Cities Are Not New 'Sanctuary cities are sanctuaries for criminals—hard stop,' Homan said. 'And President Trump made a commitment a couple weeks ago that we're going to prioritize sanctuary cities.' Simultaneously, certain cities designated 'sanctuary cities' have been less strong in their pushback against the federal Government. Louisville's Department of Corrections will now notify the Department of Homeland Security (DHS) at least 48 hours before an inmate with an immigration detainer is scheduled to be released from custody. The city's mayor, Craig Greenberg cited 'a terrifying increase in raids by ICE, including mass raids' on cities designated as sanctuary cities—claiming that by taking Louisville off the designated sanctuary city list, he prevents risking ' the safety of our broader immigrant community.' While New York City has remained the country's largest sanctuary city, its status as such and Mayor Eric Adams' desire to push back against the federal government has come into question. Even before the latest lawsuit issued by the Trump government, Adams' Administration had been embroiled in a battle with the New York City Council and court system to allow ICE agents into Rikers Island. Though he has said he will 'without a doubt' keep the city's sanctuary status. Adams has called for changes to the city's sanctuary laws after the Justice Department suit, saying that they 'go too far' in some places. 'I think we need to tweak the current laws to allow us to coordinate with the federal government when it comes down to removing those dangerous people from our streets," Adams told CBS New York. Back in February, Adams' cooperation with the federal government came under questioning after the Justice Department ordered federal prosecutors to drop corruption charges against the Mayor, stating that the case was interfering with the Democratic mayor's ability to follow through with the President's agenda to crack down on illegal immigration. The move pushed Gov. Kathy Hochul to consider removing Adams from office.


The Hill
a minute ago
- The Hill
Trump deserves the Nobel Peace Prize, but the left will never admit it
There is seemingly no worthwhile accomplishment or good deed authored by President Trump that the left will give him credit for achieving. That in and of itself speaks to the bottomless pits of partisanship and rhetorical poison some have eagerly embraced in the 'Age of Trump.' Unfortunately for the Democratic Party as a whole, such anger-fueled denial has a spillover effect that hurts the party's electoral chances. In speaking with former high-level Democrats, I am told that one of the main reasons Trump sailed to victory last November was because almost the entirety of the Democratic and far-left echo chamber mortgaged its energy and treasure seeking to demonize Trump rather than addressing the solvable real-world problems plaguing their constituents and fellow Americans. But at what cost is this coming to the Democratic Party or, more importantly, Americans looking to it for desperately needed help? Don't take my word for it. Billionaire businessman Mark Cuban recently laid into Democrats for having no policy or strategy beyond 'Trump sucks.' 'We picked the wrong pressure points,' said Cuban on 'Pod Save America.' 'It's just 'Trump sucks.' That's the underlying thought of everything the Democrats do. 'Trump sucks.' Trump says the sky is blue. 'Trump sucks.' That's not the way to win! It's just not! Because it's not about Trump — it's about the people of the United States of America — and what's good for them! And how do you get them to a place where they're in a better position, and it's less stressful for them.' Cuban — who a growing number of Democrats believe might make a credible presidential candidate in 2028 — is correct. When will it be peak 'theater of the absurd' for that echo chamber? When do working-class and disenfranchised Americans once again matter to it? When does national security once again matter to it? When does the performance art — aimed at literally just a few thousand entrenched elites living in bubbles — stop? If you only got yours information from that echo chamber, you would believe that Trump never accomplished anything; never built anything; was never successful; never made a correct decision; and never had a worthwhile instinct. Ever. And that was before he became president. Since Trump became president, inhabitants of that echo chamber have seemingly been in a constant state of rage. One of the issues that has most made them apoplectic is Trump being nominated for the Nobel Peace Prize. Over the last three decades or longer, the Nobel Prize Committee has become for many the poster child for a 'woke,' in-the-tank for the left organization. Especially when it comes to the Peace Prize. On the surface, there is nothing wrong with that, if the committee members admit that they have morphed into a propaganda arm for the far left and its causes. But they won't. Instead, they — like the Pulitzer Prize Committee — proclaim their nonpartisanship while actively discriminating against conservatives or those they perceive to be on the right. In 2015, one of its members, Geir Lundestad — possibly suffering a pang of guilt — had the good grace to admit to a mistake. That mistake being the laughable and sycophantic decision to award President Barack Obama the Nobel Peace Prize in 2009 for literally doing nothing. Obama had been in office for less than nine months when he got the award. Liberal New York Times columnist Nicholas Kristof called it 'premature.' Obama himself felt so self-conscious about getting the award that he gave serious thought to skipping the ceremony. Years later, while giving that 2015 interview, Lundestad said, 'Even many of Obama's supporters believed that the prize was a mistake. In that sense, the committee didn't achieve what it had hoped for.' Well, the committee did achieve what it set out to do, which was to fawn over a far-left president by giving him an award he never earned. It just didn't anticipate the immense blowback and ridicule. Again, it seems that, for the left, Trump should never be given any credit for anything. No matter how patently obvious that he deserves it. Even about keeping the peace and saving lives. For years prior to him becoming president — when many powerful Democrats courted his friendship and money — Trump spoke out against the war in Iraq and the needless waste of lives, something he continued to do as president. Just as he has done about the war in Ukraine. Did those calls against war and to save hundreds of thousands of lives ever register with the Nobel Committee? What about in 2020 when Trump created the Abraham Accords, an agreement that normalized relations between Israel and Arab countries? Again, in 2009, the committee awarded Obama the award for 'his extraordinary efforts to strengthen international diplomacy and cooperation between peoples.' Except, that is not what he did — and yet, he still got the award. Trump established the Abraham Accords — and was ignored by the committee. In 1998, the committee awarded the Peace Prize to John Hume and David Trimble for 'their efforts to find a peaceful solution to the conflict in Northern Ireland.' Okay, let's compare. Just recently, Trump was instrumental in preventing all-out war between India and Pakistan. Two nuclear-armed nations. Is that more valuable to the world than finding a 'peaceful solution to the conflict in Northern Ireland?' Apparently not to the committee. In 2019, the committee awarded the Peace Prize to Abiy Ahmed 'for his efforts to achieve peace and international cooperation, and in particular for his decisive initiative to resolve the border conflict with neighboring Eritrea.' Again, earlier this year, Trump brokered a peace agreement between the Democratic Republic of the Congo and Rwanda. While much of the mainstream media sought to bury the accomplishment, surely the committee knew of it. Mark Cuban was correct to call out the Democrats for only having one failed campaign policy. Trump is correct to call out the Nobel Prize Committee for its obvious and shameful bias. Brokering peace and saving lives should always be recognized — no matter if you are a Democrat or a Republican.


New York Post
a minute ago
- New York Post
Democrats' approval rating craters to 35-year low: WSJ poll
Democrats' approval rating with registered voters has plunged to a 35-year low, while Republicans maintain an edge on most of the top issues Americans care about, a new poll found. A whopping 63% of registered voters view Democrats unfavorably, dramatically eclipsing the 33% who had a positive impression, marking the lowest rating they scored since 1990, according to a Wall Street Journal survey. That abysmal rating for Democrats comes against the backdrop of lackluster figures for President Trump and Republicans. Trump's approval rating sits at 46%, with 52% who disapprove of the commander in chief. The figure is higher than this point during his first term, which was 40%. Republicans' approval rating clocked in at a net seven points unfavorable. If congressional elections were held today, 46% of voters indicated they'd back a Democrat, compared to 43% who would support a Republican. 3 The poll suggests that House Democrats have their work cut out for them to ensure they can flip control of the lower chamber. AP 3 Democrats are also carefully eyeing pickup opportunities in Senate races. AP A majority, 51%, also said the change Trump is bringing has resulted in dysfunction and chaos, compared to 45% who agreed the president was making positive adjustments. Still, across the board, voters preferred the GOP approach over the Dem position on a range of key issues. Voters trusted Republicans over Democrats on inflation by about 10 points; on immigration by 17 points; and handling illegal immigrants by 17 points, the survey found. In one unique finding, respondents disapproved of Trump's tariffs by 17 points and Republicans still scored 7 points higher than Democrats on that issue. 'The Democratic brand is so bad that they don't have the credibility to be a critic of Trump or the Republican Party,' John Anzalone, a Democratic pollster who helped conduct the survey, told the outlet. 'Until they reconnect with real voters and working people on who they're for and what their economic message is, they're going to have problems.' Anzalone teamed up with Republican Tony Fabrizio, Trump's trusted pollster during the 2024 campaign cycle, to conduct the survey for the Wall Street Journal. 3 President Trump's approval rating was underwater but higher than at this point during his first term, the poll showed. REUTERS One area where congressional Democrats topped Republicans was vaccine policy and healthcare, per the poll. Democrats are still reeling from their 2024 election loss, and key figures within the party have openly vented that the party doesn't have a strong message or sense of direction. Typically, the party out of power in the White House is favored to have a strong performance in the midterm elections, which is why many observers believe the Democrats are well-positioned heading into 2026. However, the Wall Street Journal poll shows Democrats are still remarkably anemic as the party struggles to find its footing. Around this time in 2017, voters called themselves Democrats over Republicans by 6 percentage points, per the poll. Democrats later went on to flip 40 House seats in the 2018 midterm elections. This go-around, Republicans have a 1-point edge in party identification over Democrats. Republicans have a threadbare 219 to 212 House majority and are scrambling to defy history by retaining control during the 2026 midterms. The Wall Street Journal poll sampled 1,500 registered voters between July 16–20 with a margin of error of plus or minus 2.5 percentage points.