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Trump's OBBBA to add $3.39 trn to primary debt from 2025 to 2034: CBO
Trump's OBBBA to add $3.39 trn to primary debt from 2025 to 2034: CBO

Fibre2Fashion

time7 hours ago

  • Business
  • Fibre2Fashion

Trump's OBBBA to add $3.39 trn to primary debt from 2025 to 2034: CBO

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, would add $3.39 trillion to the US primary debt between 2025 and 2034, according to a recent report by the non-partisan Congressional Budget Office (CBO). The latest CBO estimate is higher than its estimate of $3.25 trillion made at the end of June. The increase is estimated to result from a decrease in direct spending of $1.1 trillion and a decrease in revenues of $4.5 trillion, CBO said. The One Big Beautiful Bill Act would add $3.39 trillion to the US primary debt between 2025 and 2034, a report by the Congressional Budget Office said. The latest CBO estimate is higher than its estimate of $3.25 trillion made at the end of June. With interest, the tax and budget act would increase borrowing by an estimated $4.1 trillion, according to the Committee for a Responsible Federal Budget. With interest, the tax and budget act would increase borrowing by an estimated $4.1 trillion, according to Maya MacGuineas, president of the Committee for a Responsible Federal Budget. "It's still hard to believe that policymakers just added $4 trillion to the debt. 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," said MacGuineas in a statement. 'Modelers from across the ideological spectrum universally agree that any sustained economic benefits are likely to be modest, or negative, and not one serious estimate claims this bill will improve our financial situation,' she said. As of mid-2025, the US national debt stands at over $36.2 trillion, and the debt-to-gross domestic product ratio has exceeded its peak during World War II. President Donald Trump signed the bill into law after weeks of debate among congressional Republicans. The bill passed the Senate 51-50 before it passed the House of Representatives 218-214. Democrats have universally criticised the bill. Fibre2Fashion News Desk (DS)

Donald Trump considering tax break that would impact housing market
Donald Trump considering tax break that would impact housing market

The Herald Scotland

time11 hours ago

  • Business
  • The Herald Scotland

Donald Trump considering tax break that would impact housing market

"We are thinking about no tax on capital gains on houses," Trump said during an Oval Office meeting with the president of the Philippines. Trump, a wealthy real estate developer who has extensive property holdings, didn't go into details about his proposal, and the White House didn't immediately respond to questions. Trump on July 4 signed a measure that extends his 2017 tax cuts and includes new tax breaks, including on tipped wages, overtime pay and car loans. The law also slashes spending on the Medicaid health insurance program for lower income Americans and lifts the nation's looming debt ceiling. The measure is expected to increase the federal debt by $3.4 trillion over 10 years, according to the Congressional Budget Office. Trump can't turn his suggestion for the housing market into reality by himself: cutting the tax on home sales would require additional legislation. The move also comes as the president has long pushed Federal Reserve Chair Jerome Powell to lower interest rates. "If the Fed would lower rates, we wouldn't have to do that," Trump said of the potential home sales tax cut. In general, the Fed cuts interest rates to stimulate a flagging economy and job market. It increases interest rates - or keeps them higher for longer - to lower inflation or prevent a spike in prices. Powell warned in April about the impact of Trump's tariffs on inflation, telling the Economic Club of Chicago that "Unemployment is likely to go up as the economy slows, in all likelihood, and inflation is likely to go up as tariffs find their way and some part of those tariffs come to be paid by the public." Contributing: Paul Davidson

Trump tax law to add US$3.4 trillion to US deficits
Trump tax law to add US$3.4 trillion to US deficits

The Star

time17 hours ago

  • Business
  • The Star

Trump tax law to add US$3.4 trillion to US deficits

WASHINGTON: President Donald Trump's recently enacted tax and spending law will add US$3.4 trillion to US deficits over a decade and leave millions without health care coverage, according to a new estimate from the non-partisan Congressional Budget Office (CBO). The CBO score for the law, released Monday, reflects a US$4.5 trillion decrease in revenues and a US$1.1 trillion decline in spending through 2034, relative to a current-law baseline. The new analysis doesn't incorporate so-called dynamic effects, such as the impact on growth or interest rates over time that the legislation's measures might have. Trump signed the 'One Big Beautiful Bill' into law on July 4 after months of negotiations with congressional Republicans. Encompassing much of Trump's economic agenda, it permanently extends his 2017 income tax cuts and some breaks for businesses, lifts the cap on federal deductions for state and local taxes and eliminates taxes on tips and overtime on a temporary basis, among other provisions. Passage of the law triggered warnings from some economists and investors about a widening of America's budget shortfall – already large by historical standards – that could push borrowing costs and inflation up. The Trump administration points to record collections from the tariffs he's imposed on most US imports this year, saying that revenue will help fill the gap. A number of spending cuts were included in the tax law in an effort to reduce deficits and offset the cost, including to Medicaid, which provides health insurance for low-income people. New work requirements for recipients of Medicaid under the age of 65 are set to begin by the end of 2026. The law also limits states' ability to tax healthcare providers to help fund the programme. Provisions in the law will result in 10 million Americans losing health insurance by 2034, according to the CBO analysis. The potential loss of health insurance coverage comes as rising prices due to tariffs already threaten to create increased economic hardship for low-income families. June inflation data showed some signs of the levies' impact on costs, and economists expect prices to continue to rise over the summer. This would disproportionately impact low-income Americans, as they tend to spend a larger share of their income on necessities, such as food. At the request of Senate Republicans, the bill was also scored separately relative to a current policy baseline. On that basis it would reduce deficits by US$366bil over a decade. Lawmakers used this accounting manoeuvre to count the permanent extension of the 2017 income tax cuts as costing nothing. — Bloomberg

Donald Trump's tax law to add $3.4 trillion to US deficits, says CBO
Donald Trump's tax law to add $3.4 trillion to US deficits, says CBO

Business Standard

time21 hours ago

  • Business
  • Business Standard

Donald Trump's tax law to add $3.4 trillion to US deficits, says CBO

President Donald Trump's recently enacted tax and spending law will add $3.4 trillion to US deficits over a decade and leave millions without health care coverage, according to a new estimate from the nonpartisan Congressional Budget Office. The CBO score for the law, released Monday, reflects a $4.5 trillion decrease in revenues and a $1.1 trillion decline in spending through 2034, relative to a current-law baseline. The new analysis doesn't incorporate so-called dynamic effects, such as the impact on growth or interest rates over time that the legislation's measures might have. Trump signed the 'One Big Beautiful Bill' into law on July 4 after months of negotiations with congressional Republicans. Encompassing much of Trump's economic agenda, it permanently extends his 2017 income-tax cuts and some breaks for businesses, lifts the cap on federal deductions for state and local taxes and eliminates taxes on tips and overtime on a temporary basis, among other provisions. Passage of the law triggered warnings from some economists and investors about a widening of America's budget shortfall — already large by historical standards — that could push borrowing costs and inflation up. The Trump administration points to record collections from the tariffs he's imposed on most US imports this year, saying that revenue will help fill the gap. A number of spending cuts were included in the tax law in an effort to reduce deficits and offset the cost, including to Medicaid, which provides health insurance for low-income people. New work requirements for recipients of Medicaid under the age of 65, are set to begin by the end of 2026. The law also limits states' ability to tax health care providers to help fund the program. Provisions in the law will result in 10 million Americans losing health insurance by 2034, according to the CBO analysis. The potential loss of health insurance coverage comes as rising prices due to tariffs already threaten to create increased economic hardship for low-income families. June inflation data showed some signs of the levies' impact on costs and economists expect prices to continue to rise over the summer. This would disproportionately impact low-income Americans as they tend to spend a larger share of their income on necessities, such as food. At the request of Senate Republicans, the bill was also scored separately relative to a current policy baseline. On that basis it would reduce deficits by $366 billion over a decade, with revenues falling $849 billion in the period — about one-fifth of the drop recorded in the conventional scoring. Lawmakers used this accounting maneuver to count the permanent extension of the 2017 income-tax cuts as costing nothing.

Trump says he's considering a new tax break. Here's how it could impact the housing market.
Trump says he's considering a new tax break. Here's how it could impact the housing market.

USA Today

timea day ago

  • Business
  • USA Today

Trump says he's considering a new tax break. Here's how it could impact the housing market.

After pushing through a sweeping package of tax cuts in his mega-bill signed into law earlier this month, President Donald Trump is now eyeing another potential tax break for home sellers. Trump said July 22 that his administration is considering eliminating capital gains taxes that are levied when a home is sold for more than the previous purchase price. 'We are thinking about no tax on capital gains on houses,' Trump said during an Oval Office meeting with the president of the Philippines. Trump, a wealthy real estate developer who has extensive property holdings, didn't go into details about his proposal, and the White House didn't immediately respond to questions. Trump on July 4 signed a measure that extends his 2017 tax cuts and includes new tax breaks, including on tipped wages, overtime pay and car loans. The law also slashes spending on the Medicaid health insurance program for lower income Americans and lifts the nation's looming debt ceiling. The measure is expected to increase the federal debt by $3.4 trillion over 10 years, according to the Congressional Budget Office. Trump can't turn his suggestion for the housing market into reality by himself: cutting the tax on home sales would require additional legislation. The move also comes as the president has long pushed Federal Reserve Chair Jerome Powell to lower interest rates. "If the Fed would lower rates, we wouldn't have to do that," Trump said of the potential home sales tax cut. In general, the Fed cuts interest rates to stimulate a flagging economy and job market. It increases interest rates – or keeps them higher for longer – to lower inflation or prevent a spike in prices. Powell warned in April about the impact of Trump's tariffs on inflation, telling the Economic Club of Chicago that "Unemployment is likely to go up as the economy slows, in all likelihood, and inflation is likely to go up as tariffs find their way and some part of those tariffs come to be paid by the public." Contributing: Paul Davidson

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