GOP Senate Tax Bill Would Increase Deficit by $1 Trillion Even With Economic Growth, Analysis Says

The Senate Republican tax bill would increase the federal budget deficit by $1 trillion over the next decade even when taking into account increased economic growth, according to a congressional analysis released Thursday.

Senate Majority Leader Mitch McConnell, R-Kentucky, speaks about tax reform on Capitol Hill in Washington, DC, November 30, 2017.(Credit: SAUL LOEB/AFP/Getty Images)

The so-called dynamic score from the Joint Committee on Taxation estimated that the tax cuts and other changes in the bill would boost the nation’s economic output by an average of 0.8% over the 10-year period.

That would reduce the bill’s earlier estimated $1.5-billion deficit impact, which was calculated without taking into account potential economic growth, by about $408 billion.

But the bill still would add $1 trillion to the deficit, undercutting assertions by Republican leaders and Trump administration officials that the additional growth spurred by the bill’s large tax cuts would pay for themselves over time.

Read the full story on LATimes.com.

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