Trump cannot do without duties. Otherwise, US finance is threatened with a powerful deficit
According to the forecast published on Tuesday, the budget effects of the Act are to increase deficits by a total of over $ 1.7 trillion in the next five years and $ 2.4 for a decade.
In the added annotation, CBO estimates that As a result of the Act, 10.9 million people will lose their health insuranceof which 1.4 million are people “without verified citizenship status” or the required immigrant status.
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Trump has repeatedly accused CBO – an non -partisan expert office in Congress, dealing with analysis of the effects of legislation – that he was dominated by Democrats, and his analysis was wrong. Trump claimed, among others that CBO underestimates the pace of economic growth, which America under his leadership is to achieve, and thus is wrong in forecasts.
Trump's people criticize CBO
Republicans repeated these attacks after the publication of the latest analysis. Republican majority leader in the House of Representatives Steve Scalise He compared CBO on Wednesday to “a judge who often likes to knock down our playmaker.” Meanwhile, the party leader in the Senate John Thune assured that the work on the project will continue to go in full swing to make the whole package to the Independence Day on July 4.
The office analysis was published at a crucial moment when the Budget Act containing most of Trump's economic promises – the consolidation of tax cuts from 2017, eliminating taxes on tips or overtime – was voted by the House of Representatives and is considered by the Senate, where it will be changed.
In recent days, in sharp words, the bill has been criticized by a billionaire and former adviser to Trump Elon Musk, who called her “disgusting nasty” due to insufficiently in his opinion deep budget cuts. Republican congressmen also began to criticize her, who voted for her two weeks earlier.
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The project – named by Trump “One Big Beautiful Bill Act” (Act on one great beautiful project) – combines a permanent extension of tax reductions that were to expire in the coming fiscal year, and relatively deep budget cuts, including in state health insurance for the poorest (Medicaid), private insurance subsidies under the so -called Obamacare and Food Purchase Subsidy Programs (SNAP).
For this reason, CBO estimates that it will contribute to the loss of insurance by millions of Americans. Republicans maintain that cuts only affect illegal immigrants and eliminate fraud and abuse.
Earlier initial CBO analysis on the effects of the proposed tax regulations said that the changes would benefit primarily to the changes, while the least earners will lose. According to 10 % forecast The least paid will lose 2-4 percent income in the coming years, while the best earning 10 percent. will gain 1-4 percent
Trade war and new income
At the same time, on Wednesday, CBO issued a separate analysis forecasted revenues from donal duties imposed by Donald Trump, estimating that they will reduce the deficit by 2.5 trillion for 10 years. The analysis takes into account the duties in force until May 13 (including reduced duties on products from China) and forecasts that duties will contribute to a decrease in GDP growth and inflation in this and next year by 0.4 percentage points. These estimates largely coincide with other analyzes on this subject.
