Members of both parties further added to the deficit in March when they increased military and domestic spending by nearly $300 billion over the next two years.
During the debate over the bill, Republican leaders predicted their bill would spark massive economic growth that would limit — or even eliminate — the additions to the deficit. But the CBO projected Monday that the bill would boost economic growth 0.7 percent over a decade — not enough to keep it from adding to the deficit.
The new tax law that President Trump and congressional Republicans passed in December will cut government revenue by $1.3 trillion from 2018 to 2028, CBO reported. When the costs of paying interest on that debt are included, the tax cuts’ total addition to the deficit comes to $1.9 trillion, CBO said.
“The federal #budget deficit grows substantially over the next several years,” CBO Budget Director Keith Hall said Wednesday after his agency released the report. “Federal debt is projected to be on a steadily rising trajectory throughout the decade.”
America’s deficit is rising sharply and will surpass $1 trillion a year by 2020, a gap that has grown since Congress cut taxes and increased spending, the Congressional Budget Office reported Monday.