Budget office says Trump's tax law will add $3.4 trillion to deficits, leave 10 million uninsured
Republicans are touting the bill as a tax cut for all Americans, yet a recent AP-NORC poll found about two-thirds of US 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 US. 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Arabiya
an hour ago
- Al Arabiya
Minkah Fitzpatrick Gets a $16.245 Million Signing Bonus in His Restructured Dolphins Deal
Minkah Fitzpatrick and the Miami Dolphins agreed Sunday to a restructured contract that adds a $16.245 million signing bonus to the All-Pro safety's deal. Agent Drew Rosenhaus confirmed the restructured deal, which was first reported by ESPN. The Dolphins acquired Fitzpatrick in a trade with the Steelers last month that sent All-Pro cornerback Jalen Ramsey and Pro Bowl tight end Jonnu Smith to Pittsburgh. Fitzpatrick, who became one of the top safeties in the NFL with the Steelers, returned to the team that drafted him 11th overall in 2018 and traded him away at his request in 2019. There previously was no guaranteed money left on Fitzpatrick's contract that runs through 2026. No years were added, but Rosenhaus said they're seeking a multiyear extension. The Dolphins cleared $11 million in cap space in the restructured deal by converting part of Fitzpatrick's salary to a bonus, according to NFL Network. Fitzpatrick had $2 million of his 2026 salary moved up to this coming season. He is now due $17.5 million in 2025 and $15.6 million in 2026. Fitzpatrick had signed a four-year extension with the Steelers in 2022 that made him the highest-paid safety in the NFL at the time and gave him $36 million in guarantees.
Al Arabiya
2 hours ago
- Al Arabiya
US says tariff deadline of August 1 is firm, no extensions
The US deadline of August 1 for imposing tariffs on its trading partners is firm and there will be no extensions, Commerce Secretary Howard Lutnick said Sunday. 'So no extensions, no more grace periods. August 1, the tariffs are set. They'll go into place. Customs will start collecting the money, and off we go,' Lutnick told 'Fox News Sunday.' For all the latest headlines follow our Google News channel online or via the app. After the levies kick in, President Donald Trump – who was negotiating Sunday in Scotland with European Union officials – is still willing to keep talking, Lutnick said. Of the Europeans, Lutnick said, 'You know they're hoping they make a deal, and it's up to President Trump, who's the leader of this negotiating table. We set the table.' So far five countries have struck deals with the Trump administration ahead of the Friday deadline as it tries to overhaul the global system of largely free trade by slapping tariffs on countries that the United States deems as engaging in unfair practices. These five are Britain, Vietnam, Indonesia the Philippines, and Japan. The levies they accepted are often higher than the new base rate of 10 percent that the United States has applied to most countries since April. But they are far below the levels the Trump administration threatened to impose if no deal were reached.
Al Arabiya
4 hours ago
- Al Arabiya
Trump once decried the idea of presidential vacations. His Scotland trip is built around golf
During sweaty summer months Abraham Lincoln often decamped about 3 miles (5 kilometers) north of the White House to the Soldiers Home, a presidential retreat of cottages and parkland in what today is the Petworth section of northwest Washington. Ulysses S. Grant sometimes summered at his family's cottage in Long Branch, New Jersey, even occasionally driving teams of horses on the beach. Ronald Reagan once said he 'did some of my best thinking' at his Rancho Del Cielo retreat outside Santa Barbara, California. Donald Trump's getaway is taking him considerably farther from the nation's capital to the coast of Scotland. The White House isn't calling Trump's five-day midsummer jaunt a vacation but rather a working trip where the Republican president might hold a news conference and sit for interviews with US and British media outlets. Trump was also talking trade in separate meetings with European Commission chief Ursula von der Leyen and British Prime Minister Keir Starmer. Trump is staying at his properties near Turnberry and Aberdeen where his family owns two golf courses and is opening a third on Aug. 13. Trump played golf over the weekend at Turnberry and is helping cut the ribbon on the new course on Tuesday. He's not the first president to play in Scotland: Dwight D. Eisenhower played at Turnberry in 1959, more than a half century before Trump bought it after meeting with French President Charles de Gaulle in Paris. But none of Trump's predecessors has constructed a foreign itinerary around promoting vacation sites his family owns and is actively expanding. It lays bare how Trump has leveraged his second term to pad his family's profits in a variety of ways including overseas development deals and promoting cryptocurrencies despite growing questions about ethics concerns. 'You have to look at this as yet another attempt by Donald Trump to monetize his presidency,' said Leonard Steinhorn, who teaches political communication and courses on American culture and the modern presidency at American University. 'In this case using the trip as a PR opportunity to promote his golf courses.' Presidents typically vacation in the US. Franklin D. Roosevelt went to the Bahamas, often for the excellent fishing, five times between 1933 and 1940. He visited Canada's Campobello Island in New Brunswick, where he had vacationed as a child in 1933, 1936 and 1939. Reagan spent Easter 1982 on vacation in Barbados after meeting with Caribbean leaders and warning of a Marxist threat that could spread throughout the region from nearby Grenada. Presidents also never fully go on vacation. They travel with a large entourage of aides, receive intelligence briefings, take calls and otherwise work away from Washington. Kicking back in the United States though has long been the norm. Harry S. Truman helped make Key West, Florida, a tourist hot spot with his Little White House cottage there. Several presidents including James Buchanan and Benjamin Harrison visited the Victorian architecture in Cape May, New Jersey. More recently Bill Clinton and Barack Obama boosted tourism on Massachusetts' Martha's Vineyard, while Trump has buoyed Palm Beach, Florida, with frequent trips to his Mar-a-Lago estate. But any tourist lift Trump gets from his Scottish visit is likely to most benefit his family. Every president is forced to weigh politics versus fun on vacation, said Jeffrey Engel, David Gergen Director of the Center for Presidential History at Southern Methodist University in Dallas, who added that Trump is demonstrating his priorities. 'When he thinks about how he wants to spend his free time, A. playing golf, B. visiting places where he has investments, and C. enhancing those investments, that was not the priority for previous presidents but it is his vacation time,' Engel said. It's even a departure from Trump's first term when he found ways to squeeze in visits to his properties while on trips more focused on work. Trump stopped at his resort in Hawaii to thank staff members after visiting the memorial site at Pearl Harbor and before embarking on an Asia trip in November 2017. He played golf at Turnberry in 2018 before meeting with Russian President Vladimir Putin in Finland. Trump once decried the idea of taking vacations as president. 'Don't take vacations. What's the point? If you're not enjoying your work, you're in the wrong job,' Trump wrote in his 2004 book 'Think Like a Billionaire.' During his presidential campaign in 2015, he pledged to rarely leave the White House. Even as recently as a speech at a summit on artificial intelligence in Washington on Wednesday, Trump derided his predecessor for flying long distances for golf–something he's now doing. 'They talked about the carbon footprint and then Obama hops onto a 747 Air Force One and flies to Hawaii to play a round of golf and comes back,' he said. Presidential vacations and any overseas trips were once taboo. Trump isn't the first president not wanting to publicize taking time off. George Washington was criticized for embarking on a New England tour to promote the presidency. Some took issue with his successor John Adams for leaving the then-capital of Philadelphia in 1797 for a long visit to his family's farm in Quincy, Massachusetts. James Madison left Washington for months after the War of 1812. Teddy Roosevelt helped pioneer the modern presidential vacation in 1902 by chartering a special train and directing key staff members to rent houses near Sagamore Hill, his home in Oyster Bay, New York, according to the White House Historical Association. Four years later, Roosevelt upended tradition again, this time by becoming the first president to leave the country while in office. The New York Times noted that Roosevelt's 30-day trip by yacht and battleship to tour construction of the Panama Canal 'will violate the traditions of the United States for 117 years by taking its President outside the jurisdiction of the Government at Washington.' In the decades since where presidents opted to vacation even outside the US has become part of their political personas. In addition to New Jersey, Grant relaxed on Martha's Vineyard. Calvin Coolidge spent the 1928 Christmas holidays at Sapelo Island, Georgia. Lyndon B. Johnson had his Texas White House, a Hill Country ranch. Eisenhower vacationed in Newport, Rhode Island. John F. Kennedy went to Palm Springs, California, and his family's compound in Hyannis Port, Massachusetts, among other places. Richard Nixon had the Southern White House on Key Biscayne, Florida, while Joe Biden traveled frequently to Rehoboth Beach, Delaware, while also visiting Nantucket, Massachusetts, and St. Croix in the US Virgin Islands. George H.W. Bush was a frequent visitor to his family's property in Kennebunkport, Maine, and didn't let the start of the Gulf War in 1991 detour him from a monthlong vacation there. His son George W. Bush opted for his ranch in Crawford, Texas, rather than a more posh destination. Presidential visits help tourism in some places more than others, but Engel said that for some Americans 'if the president of the Untied States goes some place you want to go to the same place.' He noted that visitors emulating presidential vacations are out to show that 'you're either as cool as he or she, that you understand the same values as he or she, or heck maybe you'll bump into he or she.'
