Latest news with #CBO
Fibre2Fashion
14 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)
The Star
a day 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
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Business Standard
a day 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.
Times of Oman
a day ago
- Business
- Times of Oman
CBO announces auction results of 75th GDB Issue
Muscat: The Central Bank of Oman on Tuesday announced the Auction results of the 75th Government Development Bonds (GDB) issue worth OMR72.70 million. According to a media release issued by CBO's Market Operations Department, the 75th GDB Issue, which received overwhelming response from investors, has received applications amounted to OMR150,779,300. The average yield was 4.28 percent at an equivalent price of OMR100.055, while the highest yield was 4.30 percent at an equivalent price of OMR100.000 and the lowest was at 4.10 percent at an equivalent price of OMR100.560. The three-year Bond will be issued on Thursday (24 July 2025) and it will mature on 24 July 2028, carrying a coupon rate of 4.30% per annum.
Yahoo
a day ago
- Business
- Yahoo
Trump tax bill to add $3.4tn to US debt over next decade, new analysis finds
Donald Trump's new tax bill will add $3.4tn to the national debt over the next decade, according to new analysis from the nonpartisan Congressional Budget Office (CBO) released Monday. Major cuts to Medicaid and the national food stamps program are estimated to save the country $1.1tn – only a chunk of the $4.5tn in lost revenue that will come from the bill's tax cuts. The cuts will come through stricter work requirements and eligibility checks for both programs. The CBO estimates the bill will leave 10 million Americans without health insurance by 2034. Related: Trump bill set to add trillions to US debt pile – can America stop it climbing? The bill also makes permanent tax cuts that were first introduced by Republicans in Trump's 2017 tax bill. The cuts included a reduction in the corporate tax rate, from 35% to 21%, and an increase to the standard deduction. It also includes a tax dedication for workers receiving tips and overtime pay, and removes tax credits that support wind and solar power development, which could ultimately raise energy costs for Americans. Increased costs will also come from boosts to immigration and border security funding. The bill allocates nearly $170bn to immigration law enforcement, including the Immigrations and Customs Enforcement (Ice) agency and funding for a wall along the southern border. The Committee for a Responsible Federal Budget estimates that, with interest, the bill will actually add $4.1tn to the deficit. The US national debt currently stands at more than $36tn. 'It's still hard to believe that policymakers just added $4tn to the debt,' Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said 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.' Trump signed the bill into law earlier this month after weeks of debate among congressional Republicans. The bill passed the Senate 51-50 before it passed the House 218-214. While Republicans largely celebrated the bill, with Trump calling it 'the most popular bill ever signed in the history of the country', only a quarter of Americans in a CBS/YouGov poll said that the bill will help their family. Democrats meanwhile universally criticized the bill, with Ken Martin, chair of the Democratic National Committee saying that while 'the GOP continues to cash their billionaire donors' checks, their constituents will starve, lose critical medical care, lose their jobs – and yes, some will die as a result of this bill.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
