Democrats’ tax-and-spend bill will cost about $5 trillion if Democrats follow through on their promises to make the bill permanent, according to a new analysis from the Congressional Budget Office and the staff of the Joint Committee on Taxation.
Additionally, they project that it “would increase the deficit by $3.0 trillion over the 2022–2031 period.”
- Democrats have claimed that their bill is “paid for” and “costs zero,” while at the same time advocating to make permanent many programs that expand the welfare state, with the greatest amount coming from the Child Tax Credit (CTC). If the CTC were made permanent rather than ending after 2022, however, it would add nearly $1.6 trillion to the deficit.
- The SALT tax carveout for the wealthy would add $245 billion to the deficit—meaning your kids and grandkids will have to foot the bill for special tax breaks for America’s top earners.
- Americans would have to pay more simply in interest payments on our debt because of greater debt resulting from the tax-and-spend bill.
- The CBO analysis reveals that Democrats were able to use budget gimmicks and claims that the programs would be “temporary” to make it seem like the bill would only add $200 billion to the deficit over the same period—when they have made clear their goal is to make these programs permanent.
The Committee for a Responsible Federal Budget released an analysis with similar findings in late November, which show that the bill is not paid for and that Democrats’ SALT tax shelter for the wealthy makes it worse.