The compromise could add $4 trillion in debt in the next 10 years.
The White House-Senate Republican tax compromise could add almost $4 trillion in debt over the next 10 years, according to Congressional Budget Office estimates, which attribute most of the cost to lost revenues or payments on refundable tax credits.
The three-page table was released Tuesday even as House Republicans were meeting behind closed doors on the deal. And while the numbers can be understood only with some context, they could also spook deficit-conscious conservatives into demanding more spending cuts.
CBO begins its analysis from its March current law baseline that assumes all of Bush-era tax cuts would expire at New Year’s Day, and therefore gives no deficit-reduction credit for the fact that the deal begins to raise rates for the wealthiest Americans. Continue reading “The price tag: $4 trillion added to deficit”