
Budget office says Trump's tax law will add $3.4 trillion to deficits, leave 10 million uninsured
More than 10 million people will be uninsured under the law in 2034 because of the law, CBO found, an improvement from an earlier projection that found 11.8 million people losing coverage over the decade.
The release of the CBO analysis Monday comes at the end of a grueling legislative fight, but at the start of a longer political struggle to come as the two parties clash over the law's impact on the economy, healthcare and government programs. Republicans are touting the bill as a tax cut for all Americans, yet a recent AP-NORC poll found about two-thirds of U.S. 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 U.S. 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.
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'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.
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Associated Press writer Mary Clare Jalonick contributed to this report.
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Global News
an hour ago
- Global News
Why Canada's supply management is a sticking point for Trump in trade talks
The target date for a new trade deal between Canada and the United States is a little over a week away, but one issue continues to be a sticking point between both nations: Canada's supply management. Supply management, which Canada uses in the dairy, poultry and egg sectors, has been a frequent target of criticism from U.S. President Donald Trump throughout his threats of tariffs and claims that Canada is 'ripping us off.' Last month, while demanding Canada repeal its digital services tax, Trump said Canada was 'a very difficult Country to TRADE with,' claiming on his social media platform Truth Social that the country charges 'tariffs' of up to 400 per cent on dairy products. Canada uses a quota system that allows a set amount of some foreign dairy products into the country, and high tariffs only apply if countries try to exceed that allowed quota coming into Canada. Story continues below advertisement Canada's supply management system, which dates back to the 1970s, has restricted foreign access to the Canadian dairy market in order to protect domestic producers and set quality standards for products. Prime Minister Mark Carney vowed in the Liberal election platform that he will 'keep Canada's supply management off the table in any negotiations with the U.S.' So how does it work? What is supply management? The Canada-United States-Mexico Agreement (CUSMA) — which Trump re-negotiated to replace the North American Free Trade Agreement (NAFTA) during his first term — narrowly expanded U.S. access to Canada's dairy market, which is protected under supply management rules. The rules, established in the 1970s, set production quotas for Canadian farmers, guarantee minimum prices, and maintain import and quality controls. Story continues below advertisement 'Producers have a licence to produce that's determined by their quota. Producers will only produce as much as the quota says they are allowed to produce or in fact to sell,' said Sven Anders, a resource economist at the University of Alberta. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Under CUSMA, the U.S. gets access to less than five per cent of the market. But the U.S. has launched multiple disputes claiming Canada is intentionally bottlenecking those U.S. imports through tariff rate quotas, which put limits on how many exporters qualify for the cheaper duties. The issue of supply management for farmers might end up being an issue both sides are unwilling to move on. For one, most Canadian politicians are staunchly in support of the policy. 'We saw during the leaders' debate that all of the leaders, specifically in French, said that supply management was a red line in any negotiations with the Trump administration over tariffs,' said Moshe Lander, an economist at Concordia University. 'It seems that they were willing to even accept tariffs and damage to the Canadian economy rather than put dairy and supply management on the table.' The policy is aimed at protecting Canadian dairy farmers from the much larger American dairy industry and keeping prices and supplies stable by controlling the amount of product available. Story continues below advertisement Anders said Canadian politicians are reluctant to alienate dairy farmers. 'They have a lot of political clout. So, if I was a politician in Ontario or Quebec, among my constituents would be many dairy farmers. I certainly would want to fight for them,' he said. That political influence is particularly strong in Quebec, one expert said. 'In 17 ridings provincially in Quebec, people under supply management are strong enough to change the outcome of the election,' said Vincent Geloso, senior economist at the Montreal Economic Institute. 'Having influence over 17 ridings makes you a very powerful interest group.' As Canada's premiers were meeting for a three-day summit in Ontario, Quebec Premier François Legault said supply management was a hard line in the U.S. trade negotiations for him. 'There's no question about negotiating the supply management for dairy and other products,' Legault told reporters. Lander said supporters of Canada's dairy industry see the policy as necessary to protect them from the much larger American dairy industry. 'Wisconsin alone produces more milk than Canada consumes in a year,' he said. He said small Canadian dairy farms would be unable to withstand the pressure of open competition from the U.S. Story continues below advertisement 'These farms would have to merge their way up into these mega farms like you see in Wisconsin or in Minnesota to try and remain competitive. That would push a lot of farmers off their traditional land,' he said. Dairy Farmers of Canada declined Global's request for comment. 1:51 U.S. may be looking to remove non-tariff barriers, report shows However, Trump and the Republicans have their own political calculus in pushing Canada on supply management, he said. 'In the midterm elections, which are next year, maintaining Wisconsin is going to be very important for the Republicans if they want to maintain control of the House (of Representatives). If you vocally support farmers, this is one way to maybe keep that base solidified,' he said. 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Trump's criticisms aren't historically abnormal for U.S. presidents, either. 'Biden and Obama both had objections to it and voiced it,' Lander said. 'The more I say I dislike it, and the more you insist you're not going to remove it, then the more that I can say I want my way on these other things. It could be that he (Trump) just sees it as a tactic, where the Democratic presidents who had opposed it in the past merely just saw it as an annoyance.' — with files from Global's Sean Boynton and Touria Izri


Global News
an hour ago
- Global News
Algoma Steel asks Ottawa for $500M over U.S. tariff uncertainty
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Toronto Sun
an hour ago
- Toronto Sun
Man accused of attempting to assassinate Trump returns to court and hopes to represent himself
Published Jul 24, 2025 • 3 minute read In this image released by the Martin County, Fla., Sheriff's Office, law enforcement officers arrest Ryan Wesley Routh, a man suspected in an apparent assassination attempt of Donald Trump, Sept. 15, 2024. Photo by Martin County Sheriff's Office via AP, File / AP FORT PIERCE, Fla. — A man charged with attempting to assassinate President Donald Trump last year at his Florida golf course will return to court Thursday to once again explain why he wants to fire his court-appointed lawyers and represent himself. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Ryan Routh previously made the request earlier this month during a hearing in Fort Pierce before U.S. District Court Judge Aileen Cannon. She did not rule during the hearing but said she would issue a written order later. But now Routh, 59, is set to be back in front of Cannon, a day after his court-appointed federal public defenders asked to be taken off the case. Routh is scheduled to stand trial in September, a year after prosecutors say a U.S. Secret Service agent thwarted his attempt to shoot Trump as he played golf. Routh has pleaded not guilty to charges of attempting to assassinate a major presidential candidate, assaulting a federal officer and several firearm violations. The judge told Routh earlier this month that she doesn't intend to delay the Sept. 8 start date of his trial, even if she lets him represent himself. Routh, who has described the extent of his education as two years of college after earning his GED certificate, told Cannon that he understood and would be ready. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. In a June 29 letter to Cannon, Routh said that he and his attorneys were 'a million miles apart' and that they were refusing to answer his questions. He also suggested in the same letter that he could be used in a prisoner exchange with Iran, China, North Korea or Russia. 'I could die being of some use and save all this court mess, but no one acts; perhaps you have the power to trade me away,' Routh wrote. On Wednesday, the federal public defender's office filed a motion for termination of appointment of counsel, claiming that 'the attorney-client relationship is irreconcilably broken.' Attorneys said Routh refused to meet with them for a scheduled in-person meeting Tuesday morning at the federal detention center in Miami. They said Routh has refused six attempts to meet with their team. This advertisement has not loaded yet, but your article continues below. 'It is clear that Mr. Routh wishes to represent himself, and he is within his Constitutional rights to make such a demand,' the motion said. The U.S. Supreme Court has held that criminal defendants have a right to represent themselves in court proceedings, as long as they can show a judge they are competent to waive their right to be defended by an attorney. Prosecutors have said Routh methodically plotted to kill Trump for weeks before aiming a rifle through the shrubbery as Trump played golf on Sept. 15 at his West Palm Beach country club. A Secret Service agent spotted Routh before Trump came into view. Routh allegedly aimed his rifle at the agent, who opened fire, causing Routh to drop his weapon and flee without firing a shot. Law enforcement obtained help from a witness who prosecutors said informed officers that he saw a person fleeing. The witness was then flown in a police helicopter to a nearby interstate where Routh was arrested, and the witnesses confirmed it was the person he had seen, prosecutors have said. Routh has another, unrelated hearing in Cannon's courtroom scheduled for Friday on the admissibility of certain evidence and testimony that can be used for the trial. In addition to the federal charges, Routh also has pleaded not guilty to state charges of terrorism and attempted murder. 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