TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Monday, September 17, 2018

Tax Policy Center: GOP Tax Reform 2.0 Would Add $3.8 Trillion To Deficit

Washington Post, New Estimate: GOP’s Second Tax Cuts Would Add $3.8 Trillion to Deficit:

A second round of Republican tax cuts would add an additional $3.2 trillion to the federal deficit over a decade, according to a new report released by a centrist think-tank.

The package was taken up by a House committee on Thursday and is expected to head to a vote on the floor later this month.

The GOP’s “tax reform 2.0” would make permanent many of the individual and estate tax provisions in the tax law Republicans passed last fall, which the Congressional Budget Office said would already add about $1.9 trillion to the deficit, factoring for interest costs.

The second round of cuts would cost $631 billion before 2028 and an additional $3.15 trillion in the decade after that, according to the Tax Policy Center.

The finding was somewhat larger than the $2.4 trillion cost over 10 years projected by the Tax Foundation, a conservative think-tank.

http://taxprof.typepad.com/taxprof_blog/2018/09/tax-policy-center-gop-tax-reform-20-would-add-38-trillion-to-deficit.html

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Comments

The deficit is increased by spending.

Posted by: Woody | Sep 17, 2018 8:55:10 AM

The report from Tax Policy Center, which is led by former tax official states that about two-thirds of taxpayers would get a tax cut and about 9 percent would get a tax hike from the bill.

Posted by: Maria Robert | Sep 19, 2018 10:14:17 AM

@Woody,


Woody is essentially saying that subtraction can only happen by adding negative numbers, not by subtracting positive numbers.

Posted by: Unemployed Northeastern | Sep 19, 2018 1:47:21 PM