CBO: Trump's Big Beauty Bill Will Increase Deficit by $2.80 trillion, Despite Driving Up Economic Output

The nonpartisan U.S. Congressional Budget Office (CBO) projected Tuesday that President Trump's sweeping tax cuts and spending bill would lead to a $2.80 trillion increase in deficits over 10 years, despite increased economic output. Senate Republicans are considering a revised version of the bill, and the budget watchdog released a dynamic analysis of the version of the bill passed by the House in May. The CBO said the tax provisions of the bill would increase real GDP by an average of 0.5 percent over the next 10 years, reducing the U.S. deficit by $85 billion. But the agency said the bill would also lead to higher interest rates, which would increase interest payments on federal debt by $441 billion. Two weeks ago, the CBO projected that Trump's Big Beauty Act would add another $2.40 trillion to the federal government's $36.20 trillion debt over 10 years, without factoring in the potential economic impact. If interest payments on the new debt are included, the cost rises to $3 trillion.