CBO: Trump’s Great American Bill Will Increase the Deficit by $2.8 Trillion Despite Boosting Economic Output

According to a report by Jinse Finance, the nonpartisan U.S. Congressional Budget Office (CBO) projected on Tuesday that, despite increased economic output, President Trump’s comprehensive tax cuts and spending bill would add $2.8 trillion to the deficit over the next decade. Senate Republicans are currently reviewing a revised version of the bill, while the budget watchdog released a dynamic analysis of the version passed by the House in May. The CBO stated that the bill’s tax provisions would boost real GDP by an average of 0.5% over the next ten years, thereby reducing the U.S. deficit by $85 billion. However, the agency also noted that the bill would lead to higher interest rates, which would increase federal debt interest payments by $441 billion. Two weeks ago, the CBO estimated that Trump’s “Big Beautiful Bill” would add $2.4 trillion to the federal government’s $36.2 trillion debt over ten years, without factoring in potential economic impacts. If the interest payments on the new debt are included, the cost would rise to $3 trillion.