CBO: Senate tax plan would increase deficit
CBO: Senate tax plan would increase deficit by $1.4T over 10 years
Story highlights
- The Trump-backed plan would increase the deficit by $1.4 trillion over 10 years
- Trump will meet with Senate Republicans on Capitol Hill on Tuesday to discuss the plan
Washington (CNN)The
Senate GOP's tax plan would increase the deficit by $1.4 trillion over
the next 10 years, the Congressional Budget Office estimates.
The estimate
summary found that enacting the White House-backed Tax Cuts and Jobs
Act would lead to an on-budget deficit increase of about $1.44 trillion.
The CBO also estimates that with the removal of Obamacare's individual
mandate that is included in the bill, which taxes individuals who opt
out of purchasing insurance, "nongroup insurance markets would continue
to be stable in almost all areas of the country" over the next 10 years.
However,
"average premiums in the nongroup market would increase by about 10% in
most years of the decade ... relative to the CBO's baseline projected.
In other words, premiums in both 2019 and 2027 would be about 10% higher
than is projected in the baseline."
In
addition, the report estimates "(t)he number of people with health
insurance would decrease by 4 million in 2019 and 13 million in 2027."
Republican Sens. Ron Johnson of Wisconsin, Jeff Flake of Arizona, and James Lankford of Oklahoma have all expressed criticism over the current tax plan.
President Donald Trump will meet with Senate Republicans
on Capitol Hill for the third time in just over a month at their weekly
policy lunch on Tuesday. He will address tax reform and other items on
the fall legislative agenda.
CORRECTION:
This story's headline for mobile devices, search engines and social
media has been updated to correctly identify the amount by which the CBO
estimates that the Senate GOP's tax plan would increase the deficit
over the next decade. It's estimated to be $1.4 trillion.
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