Trump's ‘big, beautiful bill' will cost $3.4 trillion over about a decade: CBO
The analysis released by the nonpartisan budget scorekeeper projected the bill would add $3.394 trillion to the nation's deficits from 2025 to 2034.
A lion's share of the cost comes from the plan's tax provisions – a core element of the bill – which are estimated to decrease revenues by more than $4 trillion into 2034, while also cutting federal dollars for social programs like Medicaid and food stamps.
The biggest tax cuts in the bill are extensions of cuts first passed in 2017. They include a reduction of the corporate tax rate to 21 percent from 35 percent as well as reductions of most individual income tax rates.
The bill boosts the standard deduction while getting rid of personal exemptions.
Major business tax provisions in the law other than the lower corporate rate include a 20-percent deduction for businesses like S-corps and LLCs, which pass their tax liability onto their owners.
There's also an advanced depreciation schedule for businesses that allows deductions to be made up front as well as a new accounting standard for interest payments, which is especially valued by companies that pay for assets with borrowed money, such as the leveraged buyout and private equity sectors.
The bill also raised the state and local tax (SALT) deduction cap – one of the most controversial provisions within the Republican conference – to $40,000 from $10,000. That was a big win for blue state Republicans who threatened to spike the legislation if the cap wasn't lifted.
The tax-and-spending cut bill includes a number of provisions pledged by President Trump while on the campaign trail, including changes to taxes on tips and overtime and a new credit for seniors.
Estimated revenues through 2034 pertaining to the Senate Finance Committee, which has jurisdiction over taxes in the upper chamber, will diminish by more than $4.5 trillion.
Republicans are likely to dispute the recent cost estimate, as the president and administration officials have sought to downplay the cost of the plan's tax cuts.
The argument has drawn sharp criticism from budget hawks, some of whom have argued the true cost of the plan is likely higher than the recent CBO estimates given its potential macroeconomic effects.
'It's still hard to believe that policymakers just added $4 trillion to the debt,' Maya MacGuineas, president of the Committee for a Responsible Federal Budget said in a statement on Monday. '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.'
The CBO estimated on Monday that the overall plan, which includes major changes to Medicaid, would lead to an additional 10 million people without health insurance in 2034.
The law also includes what some Republicans have hailed as a 'historic' $150 billion boost for defense programs, along with more than $160 billion to help advance the president's deportation and border security plans.
At the same time, the bill includes major changes that could lead to hundreds of billions dollars in reduced spending for Medicaid and Supplemental Nutrition Assistance Program (SNAP), new restrictions for student loan borrowers and the phase-out of multiple popular repayment plans, as well as changes targeting the Consumer Financial Protection Bureau's funding.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 minutes ago
- Yahoo
The Democratic Party's Brand Is Cooked
Voters have increasingly little faith in the Democrats, a new Wall Street Journal poll found, with the party reaching its lowest favorability rating in more than three decades. Voters overwhelmingly believe that Republicans are better able to handle key issues in Congress than Democrats. The survey found that the majority of voters, 63 percent, have an unfavorable view of the Democratic Party. Only 33 percent hold a favorable view. This is the most unpopular that Democrats have been according to Journal polls dating back to 1990. As President Donald Trump enacts an increasingly authoritarian agenda and provides little economic benefit to the average American, Democrats are hopeful anti-Trump backlash will give them a strong showing in the 2026 midterm election. While slightly more people expect to vote for Democrats next year than Republicans, according to the Journal poll, Democrats' overall favorability has only dropped since Trump took office. 'The Democratic brand is so bad that they don't have the credibility to be a critic of Trump or the Republican Party,' John Anzalone, a Democratic pollster who worked on the survey, told the Journal. 'Until they reconnect with real voters and working people on who they're for and what their economic message is, they're going to have problems.' Anzalone's firm, which consulted for both President Joe Biden and Vice President Kamala Harris' presidential campaigns, worked on the survey with Trump pollster Tony Fabrizio. According to the survey, voters think Republicans in Congress are more capable at handling the economy, inflation and rising prices, tariffs, immigration, 'illegal' immigration, the Russia-Ukraine war, and foreign policy. On the topic of 'illegal' immigration, 48 percent have their faith in Republicans and 24 percent choose Democrats. Democrats scored higher on health care and vaccine policy. Both parties tied at 37 percent on the issue of looking out for middle class families. 'As much as I fully believe that Democrats are not doomed for all eternity, I also believe that many Democrats aren't quite grappling with the serious credibility problems the party still faces,' Democratic operative Tré Easton posted on X. 'The podcasts and everything are real cute, but we've got work to do.' Democrats also scored low in a Quinnipiac poll released earlier this month. In that survey, approval of congressional Democrats reached a new low of 19 percent, with 72 percent of voters saying they disapproved. 'This is a record low since March 2009 when the Quinnipiac University Poll first began asking this question of registered voters,' the university wrote. The Quinnippiac poll found that even registered Democrats disapproved of the party: Thirty-nine percent approved of how Democrats in Congress were handling their jobs, while 52 percent disapproved. Among registered Republicans, 77 percent approved of how Republicans are operating in Congress. In the findings from the Journal, voters are mixed on Trump. About half, or 55 percent, of voters say the country is headed in the wrong direction. This is down from 70 percent in January, meaning voters have become more optimistic since Trump took office, yet Trump is not wildly popular. He has a favorability rating of 45 percent, and an unfavorability rating of 52 percent. A total of 46 percent approve of what Trump is doing as president, and 52 percent disapprove. Fifty-three percent disapprove of Trump's handling of the economy, while 44 percent approve. On the issues of inflation, tariffs, immigration, looking out for middle class families, health care, vaccine policy, foreign policy, and the Russia-Ukraine war, voters disapprove of the job Trump is doing. On the topic of 'illegal' immigration, though, 51 percent approve and 49 percent disapprove. The Republican Party is not wildly popular either, though, with 54 percent of voters having an unfavorable view, compared to the 43 percent who have a favorable view. More from Rolling Stone Trump Claims Someone May Have Forged His Signature on Birthday Letter to Epstein I Worked With Stephen Colbert. Here's Why His Cancellation Should Scare You Yes, America Is an Oligarchy Best of Rolling Stone The Useful Idiots New Guide to the Most Stoned Moments of the 2020 Presidential Campaign Anatomy of a Fake News Scandal The Radical Crusade of Mike Pence
Los Angeles Times
11 minutes ago
- Los Angeles Times
Trump plays golf in Scotland while protesters take to the streets and decry his visit
EDINBURGH, Scotland — President Trump played golf Saturday at his course on Scotland's coast while protesters around the country took to the streets to decry his visit and accuse United Kingdom leaders of pandering to the unpopular American president. Trump and his son Eric played with the U.S. ambassador to Britain, Warren Stephens, near Turnberry, a historic course that the Trump family's company took over in 2014. Security was tight, and protesters kept at a distance were unseen by the group during Trump's round. He was dressed in black with a white 'USA' cap and was spotted driving a golf cart. The president appeared to play an opening nine holes, stop for lunch, then head out for nine more. By the middle of the afternoon, plainclothes security officials began leaving, suggesting Trump was done for the day. Hundreds of demonstrators gathered on the cobblestone and tree-lined street in front of the U.S. Consulate about 100 miles away in Edinburgh, Scotland's capital. Speakers told the crowd that Trump was not welcome and criticized British Prime Minister Keir Starmer for striking a recent trade deal to avoid stiff U.S. tariffs on goods imported from the U.K. Protests were planned in other cities as environmental activists, opponents of Israel's war with Hamas in Gaza and pro-Ukraine groups loosely formed a 'Stop Trump Coalition.' Anita Bhadani, an organizer, said the protests were 'kind of like a carnival of resistance.' June Osbourne, 52, a photographer and photo historian from Edinburgh, wore a red cloak and white hood, recalling 'The Handmaid's Tale.' Osbourne held up a picture of Trump with 'Resist' stamped over his face. 'I think there are far too many countries that are feeling the pressure of Trump and that they feel that they have to accept him, and we should not accept him here,' Osbourne said. The dual U.S.-British citizen said the Republican president was 'the worst thing that has happened to the world, the U.S., in decades.' Trump's late mother, Mary Anne MacLeod, was born on the Isle of Lewis in Scotland, and the president has suggested he feels at home in the country. But the protesters did their best to change that. 'I don't think I could just stand by and not do anything,' said Amy White, 15, of Edinburgh, who attended with her parents. She held a cardboard sign that said, 'We don't negotiate with fascists.' 'So many people here loathe him,' she said. 'We're not divided. We're not divided by religion, or race or political allegiance, we're just here together because we hate him.' Other demonstrators held signs of pictures with Trump and Jeffrey Epstein, as the fervor over files in the late child abuser's case has created a political crisis for the president. In the view of Mark Gorman, 63, of Edinburgh, 'The vast majority of Scots have this sort of feeling about Trump that, even though he has Scottish roots, he's a disgrace.' Gorman, who works in advertising, said he came out 'because I have deep disdain for Donald Trump and everything that he stands for.' A Scottish newspaper, the National, greeted Trump's arrival with a banner headline in its Friday edition that read, 'Convicted U.S. felon to arrive in Scotland.' Saturday's protests were not nearly as large as the throngs that demonstrated across Scotland when Trump played at Turnberry during his first term in 2018. But, as bagpipes played, people chanted, 'Trump out!' and raised dozens of homemade signs with such messages as 'No red carpet for dictators,' 'We don't want you here' and 'Stop Trump. Migrants welcome.' One dog had a sign attached that said 'No treats for tyrants.' Some on the far right took to social media to call for gatherings supporting Trump in places such as Glasgow. Trump also plans to talk trade with Starmer and Ursula von der Leyen, the European Commission president. But golf is a major focus. The family will also visit another Trump course near Aberdeen in northeastern Scotland, before returning to Washington on Tuesday. The Trumps will cut the ribbon and play a new, second course in that area, which officially opens to the public next month. Scottish First Minister John Swinney, who is also set to meet with Trump during the visit, announced that public money will go to staging the 2025 Nexo Championship, previously known previously as the Scottish Championship, at Trump's first course near Aberdeen next month. 'The Scottish government recognizes the importance and benefits of golf and golf events, including boosting tourism and our economy,' Swinney said. At a protest Saturday in Aberdeen, Scottish Parliament member Maggie Chapman told the crowd of hundreds: 'We stand in solidarity, not only against Trump but against everything he and his politics stand for.' The president has long lobbied for Turnberry to host the British Open, which it has not done since he took over ownership. In a social media post Saturday, Trump quoted the retired golfer Gary Player as saying Turnberry was among the 'Top Five Greatest Golf Courses' he had played in as a professional. The president, in the post, misspelled the city where his golf course is. Weissert writes for the Associated Press.
The Hill
11 minutes ago
- The Hill
David Letterman on ‘gutless' cancellation of Colbert's show: ‘Pure cowardice'
Comedian David Letterman on Friday joined the chorus of late-night hosts to bash CBS News after it announced it would sunset 'The Late Show' after more than three decades on air, while praising host Stephen Colbert as a 'martyr.' Letterman — the show's first host — alluded to the recent $16 million settlement between CBS's parent company Paramount Global and the Trump administration, and its expected merger with entertainment giant Skydance, when he called the decision to nix the program 'gutless.' 'I think one day, if not today, the people at CBS who have manipulated and handled this are going to be embarrassed because this is gutless,' he said during a recorded chat with his former 'Late Show' producers Barbara Gaines and Mary Barclay. 'I only wish this could happen to me. This would have been so great for me.' Paramount called the move 'purely a financial decision' and not related to the show's performance or content. Letterman, like other press advocates and some Democrats, did not seem satisfied with that answer. Instead, the 'Late Show' veteran cast the blame on who he called the 'Oracle twins,' referring to billionaire Larry Ellison and his son David Ellison, who is set to lead the 'New Paramount' after the Federal Communications Commission gave the greenlight for Skydance to acquire the company. The merger is expected to be completed by Aug. 7. 'There's no fairness to these goons,' Letterman said, adding 'These guys are bottom feeders. That's exactly what this is.' 'Of course, they know that broadcast television is withering, so now they want, just want to make sure on top of buying something that doesn't have the same value as it had 30 years ago. They don't want to be hassled by the United States government,' he continued. 'So, they want CBS to take care of all of that mess.' The comedian also blasted CBS's decision to settle with Trump after he sued '60 Minutes' over an interview with former Vice President Harris during the 2024 presidential campaign as 'pure cowardice.' Top names in late-night television — such as Jimmy Kimmel, Jimmy Fallon, Jon Stewart and Seth Meyers — have defended Colbert, who has openly raised concerns over Paramount's recent decisions. Letterman was no different. 'Now, for Stephen, I love this. He's a martyr. Good for him, right?' he told his former producers. 'Now we've all got to kiss Stephen Colbert's ring now,' he quipped later. 'And if you listen carefully, you can hear them unfolding chairs at the Hall of Fame for his induction, right?' Colbert, who took the reins from Letterman in 2015, has gone back-and-forth with Trump in recent days. 'I absolutely love that Colbert got fired. His talent was even less than his ratings,' the president wrote in a post on Truth Social earlier this week after the company revealed it would end the show in May 2026. The comedian replied, 'How dare you, sir. Would an untalented man be able to compose the following satirical witticism: 'Go f‑‑‑ yourself.''
