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CBO: Permanent Dem Tax & Spend Bill Costs About $5 TRILLION, Adds $3 Trillion to Deficit

Posted on Sunday, December 12, 2021
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by Outside Contributor
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6 Comments
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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.”

Click here to read CBO’s analysis.

  • 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.

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PaulE
PaulE
2 years ago

Well it took the CBO long enough to come to the same conclusion that virtually every other credible financial analyst in the private sector figured out 6 months ago. That when you strip out all the phony “end of federal funding” nonsense the Democrats inserted throughout the bill (no new or expanded federal programs are ever actually defunded – the funding is either continued indefinitely at the federal level or the cost is simply shifted to the states), that the reconciliation bill spends at least $5 Trillion dollars with a minimum of $3 Trillion dollars being unpaid for. Thus requiring massive across the board tax increases to the middle class to make up for the short-fall in funding. These would be permanent costs that can never be undone, as once any sort of federal benefit is started it is virtually impossible to repeal.

Keep in mind that these are minimum numbers, meaning that like ObamaCare and other past federal entitlement programs, the true cost over the 10 year analysis period will likely be multiples of these numbers. As an example, the CBO estimate of ObamaCare was off by a factor of three. Meaning the actual cost of the program was 3 times more expensive that what CBO originally estimated. You can expect similar revisions upward from CBO, if the American people don’t kill this bill in its entirety.

Jim Jolly
Jim Jolly
2 years ago

This Bill should be named BREAK AMERICAS BACK. The DemocRats have really sank to the lowest point in the history of America. Nancy and Schumer led by Obama and Soros are deffinatly treasoners and should be locked away ona remote island that the water is rising due to Global Warming

Ken
Ken
2 years ago

Don’t get me wrong, I’m against any version of rhe BBB bill. But, this article is a “what if” scenario. It’s not reality. The bill that ACTUALLY PASSED the House does does not make the big changes permanent and add MUCH less to the budget over time. This article is misleading and divisive and below the dignity of AMAC.

Jerry
Jerry
2 years ago

Didn’t the DemonRats say it will not cost anything?

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