Thursday, November 30, 2017
The congressional Joint Committee on Taxation said Wednesday afternoon that the Senate tax bill would add $1 trillion to federal budget deficits over the next decade, even after accounting for additional economic growth, a major blow to Republicans' contention that the $1.5 trillion tax cuts in the bill will pay for themselves through growth.
The committee, which serves as the scorekeeper for growth and revenue estimates in tax bills, estimated that the Senate bill would boost economic growth by 0.8 percent over a decade. Republicans have said they expect substantially stronger growth than that to result from the tax cuts.
Throughout the tax debate over the last month, Republican leaders have frequently cited other analyses by the committee in order to make their case for the bill.
Senator Ron Wyden of Oregon, the top Democrat on the Finance Committee, said the analysis "ends the fantasy about magical growth and claims that tax cuts pay for themselves."
"What it proves is that this bill offers very little other than a holiday bonanza to multinational corporations and special interests," he said.
Senators debated whether to send the bill back to Senate Finance Committee over concerns about the deficit impact, a move that would have halted the bill and possibly killed it. Republican senators ultimately all voted to proceed, setting the stage for a full vote at some point.
Senator John McCain of Arizona said he'll vote yes on the bill, but Senator Susan Collins of Maine said she is still undecided.
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