Trump's ‘big, beautiful bill' will cost $3.4 trillion over about a decade: CBO
The analysis released by the nonpartisan budget scorekeeper projected the bill would add $3.394 trillion to the nation's deficits from 2025 to 2034.
A lion's share of the cost comes from the plan's tax provisions – a core element of the bill – which are estimated to decrease revenues by more than $4 trillion into 2034, while also cutting federal dollars for social programs like Medicaid and food stamps.
The biggest tax cuts in the bill are extensions of cuts first passed in 2017. They include a reduction of the corporate tax rate to 21 percent from 35 percent as well as reductions of most individual income tax rates.
The bill boosts the standard deduction while getting rid of personal exemptions.
Major business tax provisions in the law other than the lower corporate rate include a 20-percent deduction for businesses like S-corps and LLCs, which pass their tax liability onto their owners.
There's also an advanced depreciation schedule for businesses that allows deductions to be made up front as well as a new accounting standard for interest payments, which is especially valued by companies that pay for assets with borrowed money, such as the leveraged buyout and private equity sectors.
The bill also raised the state and local tax (SALT) deduction cap – one of the most controversial provisions within the Republican conference – to $40,000 from $10,000. That was a big win for blue state Republicans who threatened to spike the legislation if the cap wasn't lifted.
The tax-and-spending cut bill includes a number of provisions pledged by President Trump while on the campaign trail, including changes to taxes on tips and overtime and a new credit for seniors.
Estimated revenues through 2034 pertaining to the Senate Finance Committee, which has jurisdiction over taxes in the upper chamber, will diminish by more than $4.5 trillion.
Republicans are likely to dispute the recent cost estimate, as the president and administration officials have sought to downplay the cost of the plan's tax cuts.
The argument has drawn sharp criticism from budget hawks, some of whom have argued the true cost of the plan is likely higher than the recent CBO estimates given its potential macroeconomic effects.
'It's still hard to believe that policymakers just added $4 trillion to the debt,' Maya MacGuineas, president of the Committee for a Responsible Federal Budget said in a statement on Monday. 'Many supporters of this law have spent months or years appropriately fuming about our unsustainable fiscal situation. But when they actually had an opportunity to fix it, they instead made it $4 trillion worse.'
The CBO estimated on Monday that the overall plan, which includes major changes to Medicaid, would lead to an additional 10 million people without health insurance in 2034.
The law also includes what some Republicans have hailed as a 'historic' $150 billion boost for defense programs, along with more than $160 billion to help advance the president's deportation and border security plans.
At the same time, the bill includes major changes that could lead to hundreds of billions dollars in reduced spending for Medicaid and Supplemental Nutrition Assistance Program (SNAP), new restrictions for student loan borrowers and the phase-out of multiple popular repayment plans, as well as changes targeting the Consumer Financial Protection Bureau's funding.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
San Francisco Chronicle
26 minutes ago
- San Francisco Chronicle
Federal agents will be out 24/7 on patrol in Washington, the White House says
WASHINGTON (AP) — As a wary Washington waited, the White House promised a ramp-up of National Guard troops and federal officers on the streets of the nation's capital around the clock starting Wednesday, days after President Donald Trump's unprecedented announcement that his administration would take over the city's police department for at least a month. The city's Democratic mayor and police chief framed the influx as a plus for public safety, though they said there are few hard measures for what a successful end to the operation might look like. The Republican president has said crime in the city was at emergency levels that only such federal intervention could fix even as District of Columbia leaders pointed to statistics showing violent crime at a 30-year low after a sharp rise two years ago. For two days, small groups of federal officers have been visible in scattered areas of the city. That is about to change, the administration says. A 'significantly higher' presence of guard members was expected Wednesday night, and federal agents will be out 24/7 rather than largely at night, according to the White House. Hundreds of federal law enforcement and city police officers who patrolled the streets Tuesday night made 43 arrests, compared with about two dozen the night before. In one neighborhood, officers from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the FBI could be seen along with the U.S. Park Police searching the car of a motorist parked just outside a legal parking area to eat takeout and drop off a friend. Two blocks away, U.S. Customs and Border Protection officers gathered in a parking lot before driving off on patrol. In other parts of the city, including those with popular nightlife hot spots, federal patrols were harder to find. At the National Mall, there was little law enforcement activity aside from Park Police cruisers pulling over a taxi driver near the Washington Monument. Unlike in other U.S. states and cities, the law gives Trump the power to take over Washington's police for up to 30 days. Extending his power over the city for longer would require approval from Congress, and that could be tough in the face of Democratic resistance. A variety of infractions are targeted The arrests made by 1,450 federal and local officers across the city included those for suspicion of driving under the influence, unlawful entry, as well as a warrant for assault with a deadly weapon, according to the White House. Seven illegal firearms were seized. Unlike in other U.S. states and cities, the law gives Trump the power to take over Washington's police for up to a month. Extending Trump's power over the city for longer would require approval from Congress, and that could be tough in the face of Democratic resistance. The president has full command of the National Guard, but as of Tuesday evening, guard members had yet to be assigned a specific mission, according to an official who was not authorized to discuss the matter publicly and spoke on condition of anonymity. As many as 800 troops were expected to be mobilized in a support role to law enforcement, though exactly what form remains to be determined. The push also includes clearing out encampments for people who are homeless, Trump has said. U.S. Park Police have removed dozens of tents since March, and plan to take out two more this week, White House press secretary Karoline Leavitt has said. People are offered the chance to go to shelters and get addiction treatment, if needed, but those who refuse could be fined or jailed, she said. City officials said they are making more shelter space available and increasing their outreach. Violent crime has dropped in the district The federal effort comes even after a drop in violent crime in the nation's capital, a trend that experts have seen in cities across the U.S. since an increase during the coronavirus pandemic. On average, the level of violence Washington remains mostly higher than averages in three dozen cities analyzed by the nonprofit Council on Criminal Justice, said the group's president and CEO, Adam Gelb. Police Chief Pamela Smith said during an interview with the local Fox affiliate that the city's Metro Police Department has been down nearly 800 officers. She said the increased number of federal agents on the streets would help fill that gap, at least for now. Mayor Muriel Bowser said city officials did not get any specific goals for the surge during a meeting with Trump's attorney general, Pam Bondi, and other top federal law enforcement officials Tuesday. But, she said, "I think they regard it as a success to have more presence and take more guns off the street, and we do too.' She had previously called Trump's moves 'unsettling and unprecedented' while pointing out he was within a president's legal rights regarding the district, which is the seat of American government but is not a state. 'I've seen them right here at the subway ... they had my street where I live at blocked off yesterday, actually,' Washington native Sheina Taylor said. 'It's more fearful now because even though you're a law-abiding citizen, here in D.C., you don't know, especially because I'm African American."
Los Angeles Times
26 minutes ago
- Los Angeles Times
California providers see ‘chilling effect' if Trump ban on immigrant benefits is upheld
If the Trump administration succeeds in barring undocumented immigrants from federally funded 'public benefit' programs, vulnerable children and families across California would suffer greatly, losing access to emergency shelters, vital healthcare, early education and life-saving nutritional support, according to state and local officials who filed their opposition to the changes in federal court. The new restrictions would harm undocumented immigrants but also U.S. citizens — including the U.S.-born children of immigrants and people suffering from mental illness and homelessness who lack documentation — and put intense stress on the state's emergency healthcare system, the officials said. Head Start, which provides tens of thousands of children in the state with early education, healthcare and nutritional support, may have to shutter some of its programs if the new rules barring immigrants withstand a lawsuit filed by California and other liberal-led states, officials said. In a declaration filed as part of that litigation, Maria Guadalupe Jaime-Milehan, deputy director of the child care and developmental division of the California Department of Social Services, wrote that the restrictions would have an immediate 'chilling effect' on immigrant and mixed-status families seeking support, but also cause broader 'ripple effects' — especially in rural California communities that rely on such programs as 'a critical safety net' for vulnerable residents, but also as major employers. 'Children would lose educational, nutritional, and healthcare services. Parents or guardians may be forced to cut spending on other critical needs to fill the gaps, and some may even be forced out of work so they can care for their children,' Jaime-Milehan said. Rural communities would see programs shutter, and family providers lose their jobs, she wrote. Tony Thurmond, California's superintendent of public instruction, warned in a declaration that the 'chilling effect' from such rules could potentially drive away talented educators who disagree with such policies and decide to 'seek other employment that does not discriminate against children and families.' Thurmond and Jaime-Milehan were among dozens of officials in 20 states and the District of Columbia who submitted declarations in support of those states' lawsuit challenging the Trump administration's new rules. Six other officials from California also submitted declarations. The lawsuit followed announcements last month from various federal agencies — including Health and Human Services, Labor, Education and Agriculture — that funding recipients would be required to begin screening out undocumented immigrants. The announcements followed an executive order issued by President Trump in which he said his administration would 'uphold the rule of law, defend against the waste of hard-earned taxpayer resources, and protect benefits for American citizens in need, including individuals with disabilities and veterans.' Trump's order cited the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, commonly known as welfare reform, as barring noncitizens from participating in federally funded benefits programs, and criticized past administrations for providing exemptions to that law for certain 'life or safety' programs — including those now being targeted for new restrictions. The order mandated that federal agencies restrict access to benefits programs for undocumented immigrants, in part to 'prevent taxpayer resources from acting as a magnet and fueling illegal immigration to the United States.' California and the other states sued July 21, alleging the new restrictions target working mothers and their children in violation of federal law. 'We're not talking about waste, fraud, and abuse, we're talking about programs that deliver essential childcare, healthcare, nutrition, and education assistance, programs that have for decades been open to all,' California Atty. Gen. Rob Bonta said. In addition to programs like Head Start, Bonta said the new restrictions threatened access to short-term shelters for homeless people, survivors of domestic violence and at-risk youth; emergency shelters for people during extreme weather; soup kitchens, community food banks and food support services for the elderly; and healthcare for people with mental illness and substance abuse issues. The declarations are part of a motion asking the federal judge overseeing the case to issue a preliminary injunction barring the changes from taking effect while the litigation plays out. Beth Neary, assistant director of HIV health services at the San Francisco Department of Public Health, wrote in her declaration that the new restrictions would impede healthcare services for an array of San Francisco residents experiencing homelessness — including undocumented immigrants and U.S. citizens. 'Individuals experiencing homelessness periodically lack identity and other documents that would be needed to verify their citizenship or immigration status due to frequent moves and greater risk of theft of their belongings,' she wrote. Colleen Chawla, chief of San Mateo County Health, wrote that her organization — the county's 'safety-net' care provider — has worked for years to build up trust in immigrant communities. 'But if our clients worry that they will not be able to qualify for the care they need, or that they or members of their family face a risk of detention or deportation if they seek care, they will stop coming,' Chawla wrote. 'This will exacerbate their health conditions.' Greta S. Hansen, chief operating officer of Santa Clara County, wrote that more than 40% of her county's residents are foreign-born and more than 60% of the county's children have at least one foreign-born parent — among the highest rates anywhere in the country. The administration's changes would threaten all of them, but also everyone else in the county, she wrote. 'The cumulative effect of patients not receiving preventive care and necessary medications would likely be a strain on Santa Clara's emergency services, which would result in increased costs to Santa Clara and could also lead to decreased capacity for emergency care across the community,' Hansen wrote. The Trump administration has defended the new rules, including in court. In response to the states' motion for preliminary injunction, attorneys for the administration argued that the rule changes are squarely in line with the 1996 welfare reform law and the rights of federal agencies to enforce it. They wrote that the notices announcing the new rules that were sent out by federal agencies 'merely recognize that the breadth of benefits available to unqualified aliens is narrower than the agencies previously interpreted,' and 'restore compliance with federal law and ensure that taxpayer-funded programs intended for the American people are not diverted to subsidize unqualified aliens.' The judge presiding over the case has yet to rule on the preliminary injunction.
Los Angeles Times
26 minutes ago
- Los Angeles Times
Federal agents will be out 24/7 on patrol in Washington, the White House says
WASHINGTON — As a wary Washington waited, the White House promised a ramp-up of National Guard troops and federal officers on the streets of the nation's capital around the clock starting Wednesday, days after President Trump's unprecedented announcement that his administration would take over the city's police department for at least a month. The city's Democratic mayor and police chief framed the influx as a plus for public safety, though they said there are few hard measures for what a successful end to the operation might look like. The Republican president has said crime in the city was at emergency levels that only such federal intervention could fix even as District of Columbia leaders pointed to statistics showing violent crime at a 30-year low after a sharp rise two years ago. For two days, small groups of federal officers have been visible in scattered areas of the city. That is about to change, the administration says. A 'significantly higher' presence of guard members was expected Wednesday night, and federal agents will be out 24/7 rather than largely at night, according to the White House. Hundreds of federal law enforcement and city police officers who patrolled the streets Tuesday night made 43 arrests, compared with about two dozen the night before. In one neighborhood, officers from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the FBI could be seen along with the U.S. Park Police searching the car of a motorist parked just outside a legal parking area to eat takeout and drop off a friend. Two blocks away, U.S. Customs and Border Protection officers gathered in a parking lot before driving off on patrol. In other parts of the city, including those with popular nightlife hot spots, federal patrols were harder to find. At the National Mall, there was little law enforcement activity aside from Park Police cruisers pulling over a taxi driver near the Washington Monument. The arrests made by 1,450 federal and local officers across the city included those for suspicion of driving under the influence, unlawful entry, as well as a warrant for assault with a deadly weapon, according to the White House. Seven illegal firearms were seized. Unlike in other U.S. states and cities, the law gives Trump the power to take over Washington's police for up to a month. Extending Trump's power over the city for longer would require approval from Congress, and that could be tough in the face of Democratic resistance. The president has full command of the National Guard, but as of Tuesday evening, guard members had yet to be assigned a specific mission, according to an official who was not authorized to discuss the matter publicly and spoke on condition of anonymity. As many as 800 troops were expected to be mobilized in a support role to law enforcement, though exactly what form remains to be determined. The push also includes clearing out encampments for people who are homeless, Trump has said. U.S. Park Police have removed dozens of tents since March, and plan to take out two more this week, White House Press Secretary Karoline Leavitt has said. People are offered the chance to go to shelters and get addiction treatment, if needed, but those who refuse could be fined or jailed, she said. City officials said they are making more shelter space available and increasing their outreach. The federal effort comes even after a drop in violent crime in the nation's capital, a trend that experts have seen in cities across the U.S. since an increase during the coronavirus pandemic. On average, the level of violence in Washington remains mostly higher than averages in three dozen cities analyzed by the nonprofit Council on Criminal Justice, said the group's president and CEO, Adam Gelb. Police Chief Pamela Smith said during an interview with the local Fox affiliate that the city's Metro Police Department has been down nearly 800 officers. She said the increased number of federal agents on the streets would help fill that gap, at least for now. Mayor Muriel Bowser said city officials did not get any specific goals for the surge during a meeting with Trump's attorney general, Pam Bondi, and other top federal law enforcement officials Tuesday. But, she said, 'I think they regard it as a success to have more presence and take more guns off the street, and we do too.' She had previously called Trump's moves 'unsettling and unprecedented' while pointing out he was within a president's legal rights regarding the district, which is the seat of American government but is not a state. For some residents, the increased presence of law enforcement and National Guard troops is nerve-racking. 'I've seen them right here at the subway ... they had my street where I live at blocked off yesterday, actually,' Washington native Sheina Taylor said. 'It's more fearful now because even though you're a law-abiding citizen, here in D.C., you don't know, especially because I'm African American.' Whitehurst and Khalil write for the Associated Press. AP writers Konstantin Toropin and Will Weissert, photographer Jacquelyn Martin and video journalist River Zhang contributed to this report.
