Analysis: Tax bill would add $1T to deficit

Friday, December 1, 2017, Vol. 41, No. 48

WASHINGTON (AP) — A new congressional analysis says the Senate tax package would add $1 trillion to the budget deficit over the next decade, much less than previously estimated.

The new analysis by the nonpartisan Joint Committee on Taxation says the tax package would increase economic growth, generating an additional $458 billion in tax revenue. The committee previously estimated that the package would add $1.4 trillion to the deficit.

The additional revenue is a boost to the bill but is still far short of the $2 trillion promised by Treasury Secretary Steven Mnuchin.

Democrats noted that the analysis helps dispel the theory by some Republicans that tax cuts pay for themselves.

Democratic Senator Ron Wyden said, "This score that I've just gotten ends the fantasy about magical growth."